We have often heard the notion slow and steady wins the race. This applies to many aspects of foreign exchange markets as well. Foreign exchange can really work as a mode of earning profit provided one is aware about basic money management and works while keeping certain ground rules of Forex money management in mind.
Business firms, whether operating domestically or internationally, are certainly exposed to risks of unfavourable movements in their profits resulting from unexpected movements in exchange rates. Fluctuation of exchange rates gives rise to foreign exchange exposure and foreign exchange risk. Nevertheless, these terms are often used interchangeably, in actual they represent two different, yet closely related
When we speak of foreign exchange markets, risk comes along with it mind. Risk is an inseparable element of forex markets. Risk being a primary element in this immensely dynamic market cannot be escaped or completely avoided. Since it cannot be completely avoided, it is necessary for the players in the market to be completely
A forward contract is a commonly used external forex risk management strategy which is basically an agreement which the buyer i.e. the importer and the seller i.e. the exporter enter into for trade of goods and assets. A forward contract takes place on a future date at a forward price and forward rate. A forward
The origin of the foreign exchange market in India could be traced to the year 1978 when banks in India were permitted to undertake inter-day trade in foreign exchange. After 1990s India has seen a rapid expansion of foreign exchange market in terms of participants, transaction volumes, the decline in transaction costs and more efficient
Bill discounting is a term commonly used in forex markets and international trade. It is basically a method to finance working capital by the seller of assets. It is a service availed from financial institutions like banks for a nominal fee. Bill discounting is the early release of funds. The customer gives the bank a