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Foreign exchange trading risk control strategies

   (a) the cashback forexternal management methods of transaction cashbackforexcalculatorOnline  1, strengthen account management, take the initiative to adjust assets cashbackforexpipcalculator liabilities expressed in cashbackforexprofitcalculator currency assets and liabilities are vulnerable to cashback forex calculator Online rate fluctuations, asset and liability adjustment is to rearrange these accounts or convert them into the currency most likely to maintain their value or even increase in value  2. Choose a favorable denomination currency, flexible use of soft and coin foreign exchange risk is closely related to the size of the foreign currency, transactions in the receipt and payment of different currencies, the foreign exchange risk is different in foreign exchange receipts and payments, in principle, should strive to use hard currency to receive foreign exchange, with soft currency to pay foreign exchange 3, in the contract to enter into a currency preservation clause currency preservation clause of many kinds, there is no fixed pattern, but regardless of the use of what The value of the way, as long as both parties to the contract agree, and can achieve the purpose of the value of the currency can be the main way to protect the value of gold, hard currency, a basket of currencies, etc., most of the current contract using the hard currency insurance clause 4, through the agreement, share the risk of the two sides of the transaction can be based on the agreement signed to determine the base price of the product and the basic exchange rate, to determine the rate of exchange rate changes and the two sides of the transaction to share the The rate of the risk of exchange rate changes, depending on the circumstances of the negotiation to adjust the base price of the product 5, according to the actual situation, flexible time to receive and pay in the international foreign exchange market is rapidly changing, early or delayed receipt and payment, the economic entity will produce different benefits therefore, should be good at timing, according to the actual situation flexible time to receive and pay ((B) the use of financial derivatives to avoid Transaction risk 1, the application of financial derivatives  (1) the reasonable application of forward foreign exchange transactions forward foreign exchange contracts are usually irrevocable, it is to protect the income and cash flow tools to use this hedging tool is the key to the future exchange rate expectations, if the actual change in the exchange rate does not match the expectations, although the risk is locked, but also lost the benefits due to the Thus, this hedging tool Commonly used in conservative management strategy  (2) the rational use of foreign exchange futures foreign exchange futures trading options, also depends on the exchange rate expectations and credit risk, but futures have a unique margin system, it is the leverage of gains and losses, neither limit the risk, nor limit the return  (3) the rational use of foreign exchange options trading from the perspective of avoiding foreign exchange risk, foreign exchange options are Foreign exchange forward contracts and foreign exchange futures extension, the difference is that it has the right to choose, the option buyer can give up the performance, so as to change with the market conditions, access to unlimited benefits As banks take into account that foreign exchange delivery will usually be carried out in extremely unfavorable circumstances, the corresponding will increase transaction costs, therefore, in doing options trading, should be as short as possible to shorten the future uncertainty time, in order to obtain a more favorable forward exchange rate & nbsp nbsp; (4) the reasonable use of swap transactions in currency swap transactions, because the exchange rate is predetermined, traders do not have to bear the risk of exchange rate fluctuations, and thus can play a hedging role currency swap exchange rate agreed by the two sides of the transaction, and the term of the swap transaction is often longer, and thus in hedging long-term foreign exchange risk when it is more concise than futures, forward contracts, etc. Swap transactions are to reduce the cost of long-term funding, the One of the most effective financial instruments to prevent interest rate and exchange rate risk 2, the use of derivative financial instruments to hedge should adhere to the principle of prudence Various hedging measures have advantages and disadvantages, economic entities should be based on their own business needs, carefully select hedging tools First, hedge foreign exchange risk to pay the corresponding management costs, therefore, to accurately account for management costs, risk reward, risk loss The relationship between the management cost, risk reward and risk loss Secondly, comprehensive consideration should be given to reduce or eliminate the risk of foreign exchange transactions by offsetting the exposure to monetary funds under different projects as far as possible Finally, there are various ways to prevent foreign exchange transactions risk, and the effect achieved varies, economic entities should choose a reasonable hedging program according to their own situation

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