The potential loss that could be incurred from an adverse movement in exchange rates.
Exchange Rate Risk
Related Terms
-
A stop loss is a limit order in which a trade is closed when a specified price is reached and is used to protect against further losses.
-
Risk sentiment is a term used to describe how financial market participants (traders and investors) are behaving and feeling. What traders choose to buy or sell means balancing how much they are prepared to lose with how much they hope to earn. You can look at risk sentiment as the expression of traders’ and investors’ willingness to […]
-
The risk-reward ratio is a comparison of the potential profit or reward of a trade to the potential loss or risk involved in the trade.
-
Market risk refers to the risk that an investment may face due to changes in the overall market.
-
Risk refers to the potential for financial loss or uncertainty regarding the return on investment.