Exchange risk


 

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Exchange risk

Uncertainty about the value of an asset, liability, or commitment due to uncertainty about the future value of an exchange rate. Unless they cover themselves in the forward market, traders with commitments to pay or receive foreign currency in the future bear exchange risk. So do holders of assets and liabilities denominated in foreign currency.



Similar Matches

Shanghai Stock Exchange

Shanghai Stock Exchange

One of two major securities markets in China.


Exchange rate overshooting

Exchange rate overshooting

The response of an exchange rate to a shock by first moving beyond where it will ultimately settle. Thought to help explain exchange rate volatility, this was first modeled by Dornbusch (1976).


PPP exchange rate

PPP exchange rate

Purchasing power parity exchange rate


Philadelphia Stock Exchange (PHLX)

Philadelphia Stock Exchange (PHLX)

A securities exchange trading American and European foreign currency options on spot exchange rates.


Gold exchange standard

Gold exchange standard

A fixed exchange rate system adopted in the Bretton Woods agreement. It required the U.S. to peg the dollar to gold and other countries to peg their currencies to the dollar.


Further Suggestions

TSE 300 (Toronto Stock Exchange 100 index)
Foreign exchange market
Exchange rationing
Forward foreign exchange contract
London Metal Exchange
Stock Exchange Automated Trading System PLUS
Karachi Stock Exchange
Tokyo Commodity Exchange (TOCOM)
New York Mercantile Exchange
Foreign exchange
Pegged exchange rate
Tokyo Stock Exchange (TSE)
Exchange-market intervention
Moscow Interbank Currency Exchange (MICEX)
European exchange rate mechanism (ERM)
Sao Paulo Stock Exchange
International Petroleum Exchange (IPE)
Real exchange rates
Bombay Stock Exchange (BSE)
Unequal exchange
Taiwan Stock Exchange (TSEC)
Nominal exchange rate
Chicago Stock Exchange (CHX)
Bill of exchange
Foreign exchange


 
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