HƯỚNG THỊ TRƯỜNG Arbitrageurs muốn kiếm được lợi nhuận phi rủi ro, bảo hộ giá, nhà nhập khẩu và xuất khẩu muốn bảo vệ giá trị đồng nội tệ của tài sản và nợ phải trả bằng ngoại tệ. | 126 FORWARD MARKET Arbitrageurs wish to earn risk-free profits hedgers importers and exporters want to protect the home currency values of various foreign currency-denominated assets and liabilities and speculators actively expose themselves to exchange risk to benefit from expected movements in exchange rates. It differs from the futures market in many significant ways. See also FUTURES HEDGE. FORWARD MARKET See FORWARD FOREIGN EXCHANGE MARKET. FORWARD MARKET HEDGE A forward market hedge is a hedge in which a net asset liability position is covered by a liability asset in the forward market. EXAMPLE 52 XYZ an American importer enters into a contract with a British supplier to buy merchandise for 4 000. The amount is payable on delivery of the goods 30 days from today. The company knows the exact amount of its pound liability in 30 days. However it does not know the payable in dollars. Assume further that today s foreign exchange rate is and the 30-day forward exchange rate is . In a forward market hedge XYZ may take the following steps to cover its payable. Step 1. Buy a forward contract today to purchase buy the pounds forward 4 000 in 30 days. Step 2. On the 30th day pay the foreign exchange dealer 5 4 000 pounds X and collect 4 000. Pay this amount to the British supplier. By using the forward contract XYZ knows the exact worth of the future payment in dollars 5 . The currency risk in pounds is totally eliminated by the net asset position in the forward pounds. Note 1 In the case of the net asset exposure the steps open to XYZ are the exact opposite Sell the pounds forward buy a forward contract to sell the pounds and on the future day receive and deliver the pounds to collect the agreed-upon dollar amount. 2 The use of the forward market as a hedge against currency risk is simple and direct. That is it matches the liability or asset position against an offsetting position in the forward market. See also MONEY-MARKET HEDGE. FORWARD .
