Under-hedging is a financial risk management strategy that involves opening an offsetting position for an amount that is lower than the underlying position, leaving a certain level of risk exposure, in order to access the market at more convenient circumstances in the future. For example, a company in mainland Europe agrees to purchase products worth […]

Unrealised gains and losses

Unrealised gains or unrealised losses are accounting concepts referring to the impact of variations in the price of an asset or liability in the financial statement before the sale (in the case of an asset) or the execution of the payment (if it is a liability), which would confirm the gain or loss. International businesses […]