There are three types of exchange rate risk exposure for a Financial Planner or a Risk manager:-
Translation exposure
Transaction exposure
Economic exposure
Translation exposure is the change in accounting income and balance sheet statements caused by changes in exchange rates. Under the rules [...]
Forward bookings are like forward contracts, the same as in futures and options (derivatives market).
It is an effective tool for mitigating the risks of exchange rate volatility. There are forward forex booking companies which book contracts with their clients for a fixed exchange rate for a particular currency. Such contracts are to be executed within [...]
Like all other trading markets of the capital world the forex rates are also subjected to volatility on account of various parameters like demand & supply, investment flow etc.
Due to such volatility the cost & revenue budgeting of the importers and exporters of various goods and services get affected.
The affect is due to the change [...]
Forex traders are classified in line with their decision making tools. Broadly they fall into two categories –
Fundamental traders are those who base their trading on fundamental indicators like macro and micro economic information, interest rates, money supply and political stability. They are mainly long term traders and like to hold on to their positions.
Technical [...]
Chart is one of the many tools frequently used technical tools for interpreting the market movements with respect to volumes and pricing:
Candlestick chart
Bar charts
Line charts
Point and Figure Chart
Kagi Chart
Three Line Break Chart
Tick Charts
Further all of such charts are classified into different timeframes
60 second charts or The One Minute charts
The Five, Ten and Fifteen Minute charts
Thirty [...]
