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hedging Archive

Hedging of the currency risk from the point of view of bank security

The stable and efficient functioning of banking institutions is inextricably linked to the solution of problems of increased level of risk as an integral part of banking security. Hedge is a means to reduce risk by concluding an opposite transaction, form insurance currency risk when executing futures transactions in banking, insurance, stock exchange and commercial

The peculiarities of financial risk management in large companies

The financial risk management is of primary importance in the overall system of risk management. Its main objective is to minimize the associated financial losses. This is achieved by optimizing the structure of capital (ratio of own and borrowed capital) and portfolio debt (lower cost of capital, the maximization of the weighted average term of

Theoretical aspects of choosing a method of hedging financial risks

The problem of choosing an effective method of hedging financial risk is relevant, because today there is no developed mechanism for the implementation of the selection of the appropriate methods that the company could apply in the exercise of their economic and financial activity. As a rule, a decision on a method of hedging financial

The approach to the hedging of currency risks

The state of contemporary economics is characterized by its globalization, dynamic geopolitical environment, the instability of the separate regional markets, constant development and increasing complexity of financial markets, increasing volatility of prices etc, which is accompanied by economic risks, among which special importance is attached to foreign currency risk. Its occurrence is associated with short-term