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How can a business combat a constantly shifting foreign exchange rate?

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Print article This entry was posted by admin on January 14, 2011 at 2:28 am, and is filed under Foreign Exchange Rates. Follow any responses to this post through RSS 2.0. You can leave a response or trackback from your own site.
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  • Comments (2)
  • #1 written by Cthulhu fhtagn!
    about 1 year ago
    Quote

    derivative contracts.
    A forward contract will fix the rate of the currency they buy/sell in the future.

    A futures contract will result in daily payments in proportion to shifts in exchange rates.
    An option contract gives them the right (but not duty) to sell or buy currency at specified rate.
    Using either option or futures they can arrange for flow of money that will offset losses from exchange rate (but might wipe out profits as well)

  • #2 written by Pricillia H
    about 1 year ago
    Quote

    or, if it is not doing import or export, it doesn’t really matter.

No trackbacks yet.

Can an individual in India start trading of foreign currency ?

about 10 months ago - 1 comment

Learn Foreign Currency Trading?

about 10 months ago - 8 comments

I am interested in learning foreign currency trading (FOREX). Does anyone know of a good legitimate free online training course?

business law securities question?

about 11 months ago - 1 comment

Im studying for my final in business law and im stuck on a review question. Its true or false and the statement is: A security is a financial instrument issued only by those companies trading on the New York and American Stock Excanges. Now I know that a security can be a stock or bond More >

Giving some light to foreign exchange and currency trading?

about 11 months ago - 2 comments

Traders require education, experience and knowledge. For this cause we have founded www.pairfx.com – a friendly portal providing tips, a daily market review and answering any questions traders may have. I would really appreciate if you have some feedback on the reviews we are providing on a daily basis. Most importantly, do they shed some More >

Do you have to be ruthless in business?

about 11 months ago - 10 comments

Will the ruthless businesses prevail, or is it better to “trade fair” and develop long lasting bonds? What should I do if I feel ripped off from a business partner? Learn and move on, or somehow fight for my rights (if they are “big” and I am “small”)?

Which of the following is not a cause of “Basic Business Risk”?

about 12 months ago - 1 comment

Question No :1 Which of the following is not a cause of “Basic Business Risk”? Large changes in customer demand Unstable selling price Uncertainty in input costs None of the given options Question No :2 In ____________ market stocks and bonds are traded. Capital Money Real asset Efficient

Is this business service or trading?

about 12 months ago - 1 comment

It has the accounts -Commission income -delivery vehicle -Accumulated depreciation on Office Shelving -Wages: Office -Premises -Capital -Bad Debts -Interest on Overdraft -Discount Income -Accounts Receivable -Overdraft -Office Shelving -Prepaid Expense – rates -Government bonds -Allowance for D/D -Stock of stationery -accumulated depreciation on delivery vehicle -Petrol, oil and services -Drawings -Cartage Outwards -Mortgage -Telephone

Highly traded assets such as stocks and bonds with similar risks will earn the same rate of return.?

about 1 year ago - 1 comment

The process by which this occurs is known as: a. the Beta process b. arbitrage c. risk-sharing d. diversification

What is A business owned and managed by a single individual?

about 1 year ago - 1 comment

a. assets b. business organization c. trade association d. limited partnership e. sole proprietorship f. professional association g. business license h. corporation i. cooperative j. bond

hi, does anyone know how to start a hedge fund, may be with other business structure ? thanks?

about 1 year ago - 1 comment

because i have same risk investors and i would like to have more, but on a legal way, on paper, i have been looking on the web and incorporate like a hedge fund is expensive and take too paperwork and i have no experience in dealing with paperwork and no money to waste if it More >

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