The foreign exchange market, or forex (FX), is a decentralized, electronic currency trading venue. Featuring more than U.S. $5 trillion in average daily turnover, the forex is the world’s largest market, far surpassing the premier U.S. equities and futures exchanges. Given its enormous size, depth, and offerings, the forex is a primary destination for active… Read more.
For investors and producers who participate in the global markets, currency risk is a very real consideration. Currency risk, also known as exchange-rate risk, emerges when foreign currencies unexpectedly appreciate or depreciate against one another. In the event that traditional correlations suddenly become stressed or irrelevant, once sturdy monetary relationships degrade―and currency risk runs rampant.