Today, LTG GOLDROCK came to talk to you what is the risk of foreign exchange!~
Foreign Exchange Exposure refers to the risk of potential rising or whereabouts caused by foreign exchange exchange rates fluctuations in the cost, profit, cash flow or market value of an enterprise.Foreign exchange rate fluctuations may bring losses to enterprises, or opportunities for enterprises.Since the US dollar is still the most important currency in the world, the main official reserves of countries around the world are still US dollars.The US dollar is also the main currency in my country's foreign exchange reserves . It is the key currency of the State Administration of Foreign Exchange to formulate foreign exchange rates . In 2012, my country's foreign exchange reserves reached 3311.5 billion US dollars, becoming the country with the number one global foreign exchange reserve.Therefore, we involve foreign exchange risks mainly refer to the exchange rate changes between the US dollar and various currencies.
Foreign exchange risks may have two results, or gains (Gain ); or suffering from losses.In all activities organized by an international enterprise , that is, in its business activities process, results, expected business income , there are all caused by changes in foreign exchange rates Foreign exchange risk.The risk in business activities is transaction risk , the risk in the results of business activities is accounting risk (accounting exposure) The risk of operating income is economic risks (EconomicExposure).
Foreign exchange rates are affected by many factors and unpredictable.Customers conduct foreign exchange real trading , which may obtain profits or losses. This depends on whether the customer's judgment on the market is accurate. This is the so -called "market risk ".
When certain emergencies occurs, the exchange rate may fluctuate quickly in a short time.Banks may not be able to guarantee that it can be traded in accordance with the market price instructions you issued to the bank and commission instructions or trading at your designated price.It is impossible to ensure that transactions or cannot be ensured that transactions at your designated price may bring you profits, but in most cases, it will bring you losses. This is the so -called "transaction risk".Generally speaking, only through the Internet's foreign exchange real trading method can you have the ability to respond to the fast market conditions in terms of hardware conditions.Similarly, when the international market exchange rate fluctuations are fierce, the price difference will increase, and the bank you open an account will also adjust the price difference it provided to the customer in order to prevent the risks you face. At this time, at this timeYour transaction cost is much higher than usual.
The management and operations of companies, corporate organizations , individual and national and national foreign exchange reserves , which are engaged in foreign economy, trade, investment and finance, usually collect a large number of foreign currencies or hold foreign currency debt debts internationally internationally., or foreign currency marks its assets, liabilities .Due to the different currencies used in various countries, and the exchange rate of currency exchange rates in various countries often changes, in the international economy , foreign exchange risks will occur when the international economy will generate foreign exchange risks.
