The risk management techniques that banks use when dealing with foreign exchange markets, made available to everyone Stripping away the mystique of global foreign exchange markets to reveal how banks—the ultimate foreign exchange professionals—manage their own foreign exchange exposures and propose foreign exchange prices to their corporate clients, Foreign Exchange Risk Management helps readers to emulate proven management principles. Explaining why a bank′s foreign exchange price–making is not based on guesswork or "better information" as to where exchange rates will be at a future date, the book explores the analytical pricing methods that are well–known within a bank′s foreign exchange dealing room—but are rarely shared with its clients. Equipping readers with everything they need to become confident, proactive, thoroughly professional foreign exchange risk managers working in compliance with well–articulated foreign exchange risk management policies, Foreign Exchange Risk Management is a comprehensive explanation of the key risk issues involved in foreign exchange, and how to manage them. Offers clear and in–depth information on managing risk in the world of foreign exchange Reveals the secrets of dealing with foreign exchange risk that banks use to keep themselves safe Introduces and explains the terminology and practices of the global foreign exchange market Packed with incredible insights into managing foreign exchange risk, Foreign Exchange Risk Management shares the techniques that banks use to minimize danger with readers everywhere.