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Arbitrage, Hedging, and Speculation : The Foreign Exchange Market, PDF eBook

Arbitrage, Hedging, and Speculation : The Foreign Exchange Market PDF

PDF

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Description

Explains arbitrage, hedging, and speculation from the standpoint of a participant in the foreign exchange market-whether an individual trader or an institutional trader-who possesses analytical skill, economically sound judgment, and who has access to market data.

In the foreign exchange market, arbitrage involves the simultaneous purchase and sale of a currency in different markets; the profit comes from the difference in the buying and selling prices.

Hedging and speculation are opposing strategies for dealing with risk; hedging is a cover, and speculation is an assumption of risk.

Authors also discuss futures, swaps, forward contracts, and other strategies.

For financial scholars, students, analysts, and currency traders.

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