Currency Hedging
/ˈkɜːrənsi ˈhɛdʒɪŋ/
Definitions
- (n.) A financial strategy used to reduce or eliminate exposure to exchange rate risk in international transactions or investments.
The company employed currency hedging to protect its profits from fluctuations in foreign exchange rates.
Forms
- currency hedging
Related terms
See also
Commentary
Currency hedging is commonly implemented through financial instruments such as forwards, options, and swaps to manage foreign exchange risk in contracts and investments.
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