FX instrument: Difference between revisions
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imported>Doug Williamson (Refer expressly to speculation, and link with Speculation page.) |
imported>Doug Williamson m (Removed 'a'in last line to keep plural) |
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FX instruments include foreign exchange forward contracts, FX swaps and FX options. | FX instruments include foreign exchange forward contracts, FX swaps and FX options. | ||
They are also known as | They are also known as foreign currency instruments. | ||
Revision as of 15:29, 20 June 2015
An FX instrument usually refers to a foreign exchange derivative instrument.
Like other derivative instruments, they were originally designed to reduce financial risk (in this case foreign exchange risk).
However, like other derivatives, FX instruments can also be used for speculation.
FX instruments include foreign exchange forward contracts, FX swaps and FX options.
They are also known as foreign currency instruments.
