Explains arbitrage, hedging, and speculation from the standpoint of a participant in the foreign exchange market-whether an individual trader or an institutional trader-who possesses analytical skill, economically sound judgment, and who has access to market data. In the foreign exchange market, arbitrage involves the simultaneous purchase and sale of a currency in different markets; the profit comes from the difference in the buying and selling prices. Hedging and speculation are opposing strategies for dealing with risk; hedging is a cover, and speculation is an assumption of risk. Authors also discuss futures, swaps, forward contracts, and other strategies. For financial scholars, students, analysts, and currency traders.
- ISBN10 6612417765
- ISBN13 9786612417764
- Publish Date 30 April 2004
- Publish Status Active
- Out of Print 15 June 2011
- Publish Country US
- Imprint ABC-CLIO
- Format eBook
- Pages 232
- Language English