This article first appeared in Profit & Loss. It was written by Ken Monahan, Greenwich Associates, specifically for Bloomberg. Corporations are among the most important customers of FX trading desks.

Derivatives trading offers tools for hedging and speculation in financial markets. Learn key differences and strategies for ...

ProShares Short Dow30 ETF is a popular instrument for shorting the Dow Jones Index. The DOG ETF seeks daily results that correspond to the inverse performance of the Dow Jones Industrial Average. DOG ...

Companies often try to protect their assets from various risks in a process known as hedging. Think of hedging as being similar to buying auto insurance. When you're out driving your car, there is a ...

Cambria Tail Risk ETF seeks to mitigate significant downside market risk, and falls in the hedging instruments portfolio allocation bucket. TAIL's holdings consist of a 10-year treasury bond and a ...

A detailed analysis examines various methods to protect investments when market downturns occur. The article reviews several techniques and provides insight into how each strategy works. Investors can ...

Basis risk refers to the potential mismatch between the value of an asset or liability and the financial instrument used to hedge or manage its risk. This divergence can result in unexpected gains or ...

Translation risk is the foreign exchange risk associated with the translation of net investments in foreign operations into a group’s presentation currency when preparing consolidated financial ...