many associates utter to me interest as to what currency risk means.
The meaning of currency risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged.
For example if you are a U.S. Investor and you have stocks in Canada, the return that you will realize is affected by both the change in the price of the stocks and the change of the Canadian dollar against the U.S. Dollar. Suppose that you realized a return in the stocks of 15% but if the Canadian dollar depreciated 15% against the U.S. Dollar, you would realize no gain.
Academic studies of currency risk suggest - although, without absolute certainty - that investors bearing currency risk are not compensated with higher potential returns, meaning it is essentially a needless risk to bear.
The Trade forex from » Automatic Forex Signals forum
definition of some ECN forex firm comparison and evaluation concepts
(5 posts)-
Posted 8 months ago #
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1 must pay special mind to trade related logic like the proposition that the Rand is speculated to rise against the Riyal around the 15th of July, and concentrate on tertiary sector industry field related reports, for example the fact that Rand rate will be affected by the markup in the lighting equipment export market, and as a result is going to peak, while learning to study the current forex market situation.
Posted 8 months ago # -
anybody?
Posted 8 months ago # -
arbitrary55,
from what i read the effect of the market's instability on the Rand in Saudi Arabia began surfacing around the time that the beef industry are expected to move downward and affect the ZAR-SAR rates, which if true, could advocate the alternation of the ZAR.Posted 8 months ago # -
i was told by all the journals not to even dream of buying ZAR befor 2009, when ZAR-SAR rate will be affected by the changes in the lighting equipment market, and due to that will come down.
Posted 8 months ago #
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