depreciation, which of the following methods can the company take to eliminate foreign exchange risk

Method 1: Sell foreign exchange forward contracts or foreign exchange**, if the company's income is expected to depreciate in foreign currency, you can make forward contracts or ** contracts short, if the currency depreciates, you can make up for the losses in the spot market through the profits of the ** market.

Method 2: Buy foreign exchange put options, the same foreign exchange **** can make the company profit on the options, so as to make up for the loss on the spot exchange, the disadvantage is that a certain option fee is required.

Method 3: Advance or delay the time of foreign exchange income, this method is more negative.

Method 4: Carry out bartering, directly remove the intermediary medium of currency, and there is no foreign exchange risk.

If you don't understand, you can ask.

In fact, banks, especially the Bank of China, have a lot of international settlement products, international financing can prevent large foreign exchange risks, but to pay a certain amount of business costs, if the grasp is accurate, some products can be profitable, in a variety of foreign exchange situation to grasp the initiative.

Risk hedging can be adopted.

Choose the currency you want to use in your transactions.

Adopt the method of transfer and liquidation.

Adopt foreign exchange hedging clauses.

At that time, I felt that I should do a good job in management, focus on management, be conservative, not aggressive, step by step, understand that there are good times and bad times in the enterprise, prepare in advance, and use a little less leverage, which itself can resist risks, and there is no need to engage in any external methods to eliminate foreign exchange risks. Most people hedge badly, in my understanding, many of them do not die in business, but in hedging, and the hard-earned money finally dies in the financial hedging that cannot be controlled, and the death is very fast. Hedging is extremely difficult, it is professional and professional, simply do a good job, don't do too complicated things, otherwise, in the end, you don't know how you died.

In general, it is recommended to establish a corporate foreign exchange hedge**.

Nowadays, many companies are popular to avoid the risk of depreciation.

It's as if our company itself is doing fully automatic foreign exchange ** software (the team analyzes the operation strategy, and the customer only needs to monitor, not operate like this).

There are many companies that will ask our company to buy software and then find the platform to operate by themselves. However, now we generally provide a reliable platform, such as a licensed legal institution, supervised by a local ** financial management authority, and an insurance system to ensure that the funds can be protected in case of any other circumstance, and the independent custody of the funds of the cooperative company's customers does not involve the company's operating funds.

So for this reason, many people or companies who have capital but do not have time to be professional will choose custodial foreign exchange, so custodian foreign exchange was born, and then talk about the most popular foreign exchange now, we take 10,000 US dollars as the standard, as far as I am in the company's custody principal-guaranteed type, the annualized rate is 60 US dollars per month for three months, 70 US dollars for six months, and 90 US dollars for 12 months.

Because our original purpose is to avoid the risk of depreciation, our ultimate goal is to make reasonable diversification through overall analysis, and have earned the most stable returns with the least drawdown rate. Some companies always promise too high profits, but in fact, they are likely to be false.

Hopefully, the above will help you think rationally and avoid unnecessary losses.

It is a transaction risk. Transactions are paid in foreign currency.

There are three types of foreign exchange risk: trading risk, conversion risk, and economic risk.

Transaction risk: Transaction risk, also known as transaction settlement risk, refers to the possibility of losses due to changes in foreign exchange rates in transactions denominated in foreign currencies, which is a kind of flow risk.

Translation risk: Translation risk, also known as accounting risk, refers to the risk arising from changes in the value of overseas assets and liabilities caused by changes in exchange rates in the process of accounting for the balance sheet of economic entities, which is a kind of stock risk. There are three types of manifestations:

Translation risk of stocks, fixed assets and long-term debt.

Economic risk: Economic risk, also known as operational risk, refers to a potential risk of unexpected exchange rate fluctuations that lead to changes in earnings or cash flows of a company or enterprise in a certain period of time in the future. Economic risk includes three categories: real asset risk, financial asset risk and operating income risk.

Answer]: B economic risk, also known as business risk, refers to the uncertainty of the change in the future operating income of the enterprise caused by unexpected exchange rate changes in the cost of products, sales, production and sales, etc.