Unwind

Market positions.

To simplify a market position.

For example, by reversing or removing a hedging contract.

Corporates act to mitigate FX volatility

“Currency volatility has become one of the dominant macroeconomic trends of the year. The dollar has surged to 20-year highs while the pound and euro have slumped to 50- and 20-year lows respectively. The pressure on corporates is intensifying as they adapt to this new environment.

“During calmer times pre-COVID-19, some corporates moved towards more exotic products. Now they appear to be reverting back towards the more straightforward linear products such as forwards, which are more liquid and easier for corporates to unwind should the market move against them.”

Eric Huttman, CEO at MillTechFX, The Treasurer online - 14 October 2022.

See also

• Corporate
• Currency contract
• Exotic
• Foreign exchange forward contract
• FX
• Hedging
• Linear
• Liquid
• Macroeconomics
• Mitigate
• Unwinding
• Volatility