Managing risk via the financial markets
in The UK financial system (fifth edition)
Abstract only
Log-in for full text

You are not authenticated to view the full text of this chapter or article.

manchesterhive requires a subscription or purchase to access the full text of books or journals - to see content that you/your institution should have access to, please log in through your library system or with your personal username and password.

If you are authenticated and think you should have access to this title, please contact your librarian.

Non-subscribers can freely search the site, view abstracts/extracts and download selected front and end matter. 

Institutions can purchase access to individual titles; please contact manchesterhive@manchester.ac.uk for pricing options.

ACCESS TOKENS

If you have an access token for this content, you can redeem this via the link below:

Redeem token

The prices of assets or interest or exchange rates can be subject to unexpected changes that can create losses. This chapter surveys the various methods that are open to traders to manage risk. It discusses in more detail the precise nature of exchange and interest rate risk. Exchange rate risk can arise in a number of different ways: transaction risk for exporters and importers; translation risks, which arises when it is necessary to value overseas assets and liabilities; economic exposure; and hidden exposure. On managing of exchange rate risks, the chapter also discusses how firms may reduce exchange rate exposure by methods internal to the firm such as doing nothing or hedging, and the role of methods external to the firm such as the use of the forward exchange market, temporary foreign currency deposits and loans, forfaiting, options, and back-to-back loans. It also examines strategies to manage interest rate risk.

Metrics

All Time Past Year Past 30 Days
Abstract Views 34 34 4
Full Text Views 0 0 0
PDF Downloads 24 24 17