Tag: hedging

Translation Exposure

See Also: Transaction Exposure Currency Swap Exchange Traded Funds Hedge Funds Fixed Income Securities Translation Exposure Translation exposure is a type of foreign exchange risk faced by multinational corporations that have subsidiaries operating in another country. It is the risk that foreign exchange rate fluctuations will adversely affect the translation of the subsidiary’s assets and

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Hedging Risk

Hedging Risk Definition Hedging is a strategy for reducing exposure to investment risk. An investor can hedge the risk of one investment by taking an offsetting position in another investment. The values of the offsetting investments should be inversely correlated. Hedge Your Bet When an investor buys a stock, he will profit if that stock

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