In the process of investment, investors can’t ignore the risk of trading.
Today, I’d like to share with you some risk-averse measures that I hope will help you.
As long as it is the financial industry, no matter what kind of investment behavior, there will be risks.
There is no guarantee of absolute profit.
Because there are risks, it is necessary to avoid taking high risks through some circumvention measures.
The main measures to avoid :(1) choose the appropriate contract.
In foreign trade, borrowing and other economic transactions, the choice of currency as a valuation currency is directly related to whether the subject of the transaction bears risks.
To avoid exchange rate risks, firms should strive to use their own currency as the contract currency, using hard currency for production and capital exports and soft currency for imports and capital imports.
At the same time in the contract to add a hedging clause and other measures.
(2) Hedging operations in financial markets.
The main methods include trading, futures trading, future exchange trading, option trading, borrowing and investment, discount of foreign currency bills, etc. (3) The translation risks of economic entities in the process of balance sheet accounting treatment are usually solved through balance sheet preservation.
This method requires that the amount of insured assets expressed in various functional currencies on the balance sheet is equal to the amount of insured liabilities, so that the translated risk position is zero.
Only in this way, changes in the exchange rate will not bring translation losses.
(4) Diversification of operation.
That is, its sales, production sites and raw material sources scattered around the world.
Through the diversification of international operations, when the exchange rate changes, the management department can compare the production, sales and cost changes in different regions, seek advantages and avoid disadvantages, increase the output of branches favorable to exchange rate changes, and reduce the output of branches unfavorable to exchange rate changes.
(5) Financial diversification.
That is to find a variety of sources and destinations in a number of financial markets to achieve the diversification of financing and investment.
In this way, when some foreign currencies depreciate and some foreign currencies appreciate, the company can offset most foreign exchange risks, so as to achieve the purpose of risk prevention.
The above lists several measures to avoid the risk of foreign exchange trading.
Although there are risks in financial foreign exchange, understanding the measures to avoid the risks in foreign exchange trading can help investors to carry out foreign exchange trading safely and smoothly, at least to a certain extent.
The dollar rose, gold fell sharply after hitting 1,820, and oil rose for a fifth straight day.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
