By definition, speculators engage in risky foreign currency transfers in order to earn a profit. Speculators engage in risky foreign currency transfers in order to earn a profit. Hedging is a way to avoid risk in the foreign currency market. Arbitrage occurs when a profit is actually realized. This is not guaranteed when undertaking a transaction with risk. Speculators engage in risky foreign currency transfers in order to earn a profit. An exporter is involved in the sale of goods or services to foreign consumers.
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