Hedging to limit currency

 
 
 
 
Hedging is a way to limit currency exposure by taking a position in an asset that rises and falls, thus protecting the asset from loss. However, by taking a position, it also eliminates the possibility of a gain.

A forward contract is one method of hedging. In a forward contract, the foreign currency exchange rate is locked


     
 
 
 
    

 

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Category: Economics - H
 
 
 
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