foreign exchange rate risk
41Forward exchange market — The forward exchange market is a market for contracts that ensure the future delivery of a foreign currency at a specified exchange rate. The price of a forward contract is known as the forward rate.Forward RatesForward rates are usually… …
42Sovereign Risk — The risk that a foreign central bank will alter its foreign exchange regulations thereby significantly reducing or completely nulling the value of foreign exchange contracts. This is one of the many risks that an investor faces when holding forex …
43Break even rate — A position which shows the break even rate per currency per time bracket. The break even rate is calculated with the following formula: Break Even R.= ((tot ass x avg ass rate) (tot ass x avg liab rate))/Cumulative Mismatch See also… …
44Interest rate derivative — An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate.The interest rate derivatives market is the largest derivatives market in the… …
45forward-exchange contract — An agreement to purchase foreign exchange at a specified date in the future at an agreed exchange rate. In international trade, with floating rates of exchange, the forward exchange market provides an important way of eliminating risk on future… …
46Basis risk — Is the risk of a movement between two different interest rate profiles, for example, LIBOR and US Treasury rates. See also Risk..., Foreign exchange risk, Interest rate risk, Liquidity risk and Country risk …
47Interest rate analysis — Is used to show the analysis on what if situations if the mismatched book is closed at the market rate and what will happen to the interest flow if market rates go up/down by a certain percentage. The total interest book is split into two… …
48financial price risk — The chance there will be unexpected changes in a financial price, including currency ( foreign exchange) risk, interest rate risk, and commodity price risk. Bloomberg Financial Dictionary …
49Bond (finance) — In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at a later date, termed maturity.… …
50Unequal exchange — is a much disputed concept, used preferably in Marxian economics but also in ecological economics to denote forms of exploitation hidden in, or underwriting trade. Originating, in the wake of the debate on the Singer Prebisch thesis, as an… …
