Currency Hedge: Currency hedging is used both by financial investors to parse out the risks they encounter when investing overseas, as well as by non-financial actors in the global economy for whom multi-currency activities is a necessary evil rather than a desired state of exposure. Currency hedging, like many other forms of financial hedging, can be done in two primary ways, with standardized contracts, or with customized contracts (also known as over-the-counter or OTC).

London Interbank Offered Rate (LIBOR): LIBOR is the most widely used benchmark or reference rate for short-term interest rates worldwide. It is calculated daily by the BBA.

Forwards: A contracted agreement specifying an amount of currency to be delivered, at an exchange rate decided on the date of contract.

Forward Rate Agreement: A contract agreement specifying an interest rate amount to be settled, at a pre-determined interest rate on the date of the contract. This is also known as FRAs.

Currency Option: A contract that gives the owner the right but not the obligation to take (call option) or deliver (put option) a specified amount of currency, at an exchange rate decided at the date of purchase.

Benchmark Currencies: USD, GBP, EUR, JPY, CHF, HKD, AUD, CAD.

See the current exchange rate information of all currencies.