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hedge foreign currency risk

SSaimon7y ago
Risk of default is higher with forward contract compare to exchange traded contract??? Can you please explain me this line What does it mean and the reason
John MoffatJohn MoffatTutor7y ago#1
If contracts are traded on an exchange then the contract can always be sold to someone else and money be received as a result. However a forward contract is just contracted with one party and so there is more risk as a result.
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