Exchange rate risk

Exchange rate risk is the result of a permanent change in the markets of the world supply and demand for currency in circulation. The open position is subject to price changes during the entire time of its existence. The most popular measures hold potential losses within reasonable limits are limiting position (position limit) and limiting losses (loss limit). In limiting positions set the maximum amount of a particular currency, which allows the trader to trade in a given time. Limiting losses – a measure aimed at minimizing losses trader carried out by setting the level of stop-loss on the opening.