Forex exchange rate risks on

The forex trading is primarily a carrier of the risk. By assessing the quality of a potential risk should be the following types of him, the foreign exchange risk, interest rate risk and credit risk, risk countries. Exchange rate risk. Exchange rate risk to the ongoing transition to the world market, the supply and demand on a remarkable balance of positions. For the time, it is open, the situation will be any changes in prices. The most popular measures to reduce losses short and roll positions profitable than the losses should be included in the boundaries are the boundaries and the loss limit. By limiting to a maximum of a particular currency to an operator is entitled to a single time during the negotiations. The loss of the border is a measure to prevent not by the operator through stop-loss levels setting. Interest rate risk. Interest rate risk refers to the profit and loss account, by the volatility of spreads, as well as the amount of insufficiency and the maturity of the distances between the forex trading in the book. This risk is relevant to the currency swaps, from the start, futures and options (see below). To minimize interest rate risk, the limits on the total size of inadequacy. A common approach is the separation of the discrepancy, because of their maturity in up to six months and six months. All transactions are recorded in the computerized systems used to calculate the positions of all appointments for the delivery, gains and losses. A continuous analysis of the interest rate environment is necessary, any changes that impact on May, the remaining gaps. The credit risk. Credit risk refers to the possibility of an outstanding position in foreign currencies May not be returned, as agreed, because it is a voluntary or a part of. In these cases, the trading on the regulated market, as the center of Chicago. The following types of credit risks are well known: 1. Replacement of risks occurs when the business of the bank can not find their books are in danger of not receiving repayment of the bank, if necessary, is unbalanced. 2. The risk for a regulation occurs because the time of the areas on the different continents. Therefore, the currencies of May in the trade at different prices at different times of the trading day. Australia and New Zealand dollars, then the Japanese yen, followed by the European currencies and ending with the U.S. dollar. Consequently, the payment of May, a party who declares bankruptcy (or are in bankruptcy), immediately thereafter, but before executing its own payments. Therefore, in assessing credit risks, the user need not only the market value of their currency portfolio, but also the potential exposure portfolios. The potential risk of May, by analyzing the probability in the period until the end of the leader. The currently available IT systems are very useful in implementing the policy of credit. The credit lines are easily controlled. Moreover, the adequacy of the systems in foreign currency since April 1993 by the operators of credit policy implementation. The operator of full coverage of the credit line for a return. At the meeting of the negotiations of the credit line will be automatically adjusted. When the line is full, which prevents the operator finished with the return. After the expiration of the funds back to its original level. The dictatorship of the risk. Dictatorship (sovereign) of the risk of interference by the government in the Forex activity. Although theoretically in all exchange-rate policy as well as currencies are in all respects with the exception of the risk countries, because the most important markets in terms of currencies in the U.S.. Therefore, dealers that kind of danger and his condition to regulatory restrictions.