3 ms·
If I recall reading correctly, to protect against exchange rate fluctuations, many organizations use the forex market. Forex being futures market in different
by sloaken 7y ago
If I recall reading correctly, to protect against exchange rate fluctuations, many organizations use the forex market. Forex being futures market in different currencies. So if you are worried the markets will go one way, then you place a transaction to cover that. If it never occurs you lose the transaction cost, if it does then you get covered for it. It is a little complex and you need to be sure to manage your level of risk.