currency hedging

currency hedge UK US noun [C] FINANCE, STOCK MARKET
an agreement to buy a currency at a particular rate in the future. Companies that export goods use currency hedges to be certain about the amount they will receive for particular goods when they deliver them: »

The currency hedge had been intended to protect the company against a sharp rise in the value of the pound against the euro.

currency hedging noun [U]
»

The company is happy with its currency hedging strategy, which has helped offset the impact of the weaker US dollar.


Financial and business terms. 2012.

Look at other dictionaries:

  • currency hedging — Fin a method of reducing exchange rate risk by diversifying currency holdings and adjusting them according to changes in exchange rates …   The ultimate business dictionary

  • Currency overlay — is a financial trading strategy or method conducted by specialist firms who manage the currency exposures of large clients, typically institutions such as pension funds, endowments and corporate entities. Typically the institution will have a pre …   Wikipedia

  • hedging — The practice of offsetting the price risk inherent in any cash market position by taking an equal but opposite position in the futures market. Hedgers use the futures markets to protect their business from adverse price changes. Selling ( Short)… …   Financial and business terms

  • Hedging — A strategy designed to reduce investment risk using call options, put options, short selling, or futures contracts. A hedge can help lock in existing profits. Its purpose is to reduce the volatility of a portfolio, by reducing the risk of loss.… …   Financial and business terms

  • currency hedge — Applies mainly to international equities. hedging technique to guard against foreign exchange fluctuations ( i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks). Bloomberg Financial Dictionary * * * currency hedge UK US …   Financial and business terms

  • Currency swap — Foreign exchange Exchange rates Currency band Exchange rate Exchange rate regime Exchange rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange rate Managed float regime Markets Foreign exchange market Futures… …   Wikipedia

  • Currency future — Foreign exchange Exchange rates Currency band Exchange rate Exchange rate regime Exchange rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange rate Managed float regime Markets Foreign exchange market Futures… …   Wikipedia

  • Currency crisis — A currency crisis, which is also called a balance of payments crisis, is a sudden devaluation of a currency caused by chronic balance of payments deficits which usually ends in a speculative attack in the foreign exchange market. It occurs when… …   Wikipedia

  • Currency risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk …   Wikipedia

  • Currency Binary — A currency trade that offers an all or nothing payoff based on a given currency exchange rate when the position reaches its expiration date. Binaries have a single payoff amount rather than the variable profit amounts found in traditional options …   Investment dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.