Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 3

Hedging

A risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies

Hedging Strategies
Forward exchange contract for currencies Currency future contracts Money Market Operations for currencies Forward Exchange Contract for interest Money Market Operations for interest Future contracts for interest

You might also like