hedge foreign currency riskForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › hedge foreign currency riskThis topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts April 12, 2019 at 5:20 pm #512124 SaimonParticipantTopics: 123Replies: 55☆☆Risk of default is higher with forward contract compare to exchange traded contract???Can you please explain me this lineWhat does it mean and the reason April 13, 2019 at 9:20 am #512176 John MoffatKeymasterTopics: 56Replies: 53835☆☆☆☆☆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.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)The topic ‘hedge foreign currency risk’ is closed to new replies.