# Foreign currency hedging

- Canonical URL: https://www.gerhardmerk.de/foreign-currency-hedging
- Post ID: 592277
- Modified: 2023-07-25T21:00:54+00:00
- Language: en

## Definition

The elimination of exchange rate risk when exchanging currencies if the transaction is not concluded and executed simultaneously (hedging strategy used to reduce or eliminate risks in the foreign exchange market). - See Herstatt risk, exchange rate clause, lagging, quanto, swap transaction. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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