Currency risk means a risk of negatively changing of securities or derivatives contracts value due to changing of the currency rate of your base currency to other currencies. Foreign markets generally will involve different risks from the domestic markets. In some cases, the risks will be greater and/or additional or different to those risks of domestic markets or in domestic currency. By way of an example, investments in foreign securities may expose you to the risk of exchange rate fluctuation and when you deposit collateral denominated in one currency you may be subject to margin calls in circumstances where the obligations secured by such collateral are denominated in another currency (in addition to the risk of margin calls for fluctuations in relative values). Some currencies are not freely convertible and restrictions may be placed on the conversion and/or repatriation of funds including any profits or dividends.
Currency risk. If invested in non-U.S. securities, Xxxxxxx products are subject to the risk that foreign currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Exchange-Traded Notes: Exchange-traded notes are a type of senior, unsecured, unsubordinated debt security of the issuing company. This type of debt security differs from other types of bonds and notes because ETN returns are generally based upon the performance of a market index minus applicable fees, no periodic coupon payments are distributed, and no principal protection exists. Similar to ETFs, ETNs are generally traded on a securities exchange. Investors can also hold the debt security until maturity. At that time, the issuer is obligated to give the investor a cash amount that would be equal to the principal amount times the applicable index factor less investor fees. The index factor on any given day is a mathematical equation equal to the closing value of the underlying index on that day divided by the initial index level. ETNs are subject to credit risk and liquidity risk that impact the price received upon disposition of the notes. Additional risks of investing in ETNs include limited portfolio diversification, price fluctuations, issuer default, uncertain principal repayment, and uncertain federal income tax treatment. The performance of the ETNs may vary from the actual performance of the underlying index and the performance of the underlying index components. By investing in ETNs, the owner does not have certain rights that investors in the underlying index or the underlying index components may have, such as stock voting rights.
Examples of Currency risk in a sentence
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates.
Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
More Definitions of Currency risk
Currency risk means the risk of an impact on the Group’s per- formance and financial position as a consequence of changes in exchange rates. Currency risk arises through future business trans- actions, reported assets and liabilities and also net investments in foreign operations. Group management continually monitors changes in exchange rates and acts accordingly.
Currency risk means the potential for loss on account of movement in exchange rates of Rupee against a foreign currency or on account of movement in exchange rates of one foreign currency against another or on account of movement of interest rate applicable to a foreign currency;
Currency risk. Most gems are traded in USD. A risk of loss in the case of fluctuating USD exchange rates must therefore be accepted. Counterfeiting and manipulation risk: When buying a gemstone, it is often difficult to determine its authenticity. High-quality synthetically produced gemstones are difficult to distinguish from natural gemstones. Furthermore, repairs or corrections (such as crack and high-temperature treatments) to gemstones can often only be detected by experts through the use of special technology.
Currency risk means risks arising from the volatility of foreign exchanges
Currency risk means the risk of an impact on the Group's performance and financial position as a consequence of changes in exchange rates. The Group operates internationally and is exposed to currency risks that arise from different currency exposures, primarily the US Dollar (USD) and Euro (EUR). Currency risk arises through future business transactions, reported assets and liabilities and also net investments in foreign operations. The group management continually monitors changes in exchange rates and acts accordingly. For more detailed information about the Group's currency exposure, see the sensitivity analysis in the following table based on strengthening the SEK by 10% in relation to each currency.
Currency risk means the risk of an impact on the Group’s per- formance and financial position as a consequence of changes in exchange rates. Currency risk arises through future business
Currency risk means the risk of loss arising from changes in the exchange rates of the currencies in which the Fund‘s assets are denominated against the Fund‘s denomination currency and the impact of those changes on the value of the assets in the Fund. The impact of the above risk on the Fund‘s assets and risk profile can be considered moderate.