Strategies to Manage Foreign Exchange Rate Risk

Reported 2 days ago

Foreign exchange rate risk, arising from fluctuations in currency values, can significantly impact investors and businesses operating internationally. To mitigate this risk, several strategies can be employed, including forward contracts, currency futures, options contracts, natural hedging, and multi-currency accounts. Each method offers unique benefits and levels of flexibility, helping individuals and companies protect their investments against adverse currency movements.

Source: YAHOO

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