Drawdown

In finance, the drawdown is a concept related to loan facilities that allow the borrower to obtain funds from a credit line during the loan period. A drawdown refers to each…

Dynamic Hedging

Dynamic Hedging is a foreign exchange management strategy that provides a flexible solution to protect investments from exchange rate risks as it allows businesses and individuals to readapt their…

Early draw

Under the terms of a flexible forward contract, the purchasing party can activate early draws – which involve exchanging a portion of the total amount specified in the contract…

ECB exchange rates

The euro foreign exchange reference rates are the benchmark exchange rates published by the European Central Bank (ECB) and updated at around 3.00 pm Central European Time every working day. These…

Economic calendar

The economic calendar is a schedule of the most relevant economic events followed by investors. These events often have a significant impact on the financial markets and currency volatility. Foreign…

Economic Exposure

Economic exposure is the term used to define the risk posed by foreign exchange rate fluctuations with adverse effects on a company’s financial stability. When a company invests or operates in…

Economic Exposure Management

Economic Exposure Management is the set of methods companies can use to handle economic risk, also known as operational risk. This is the potential impact of adverse exchange rate fluctuations…

Economic value added (EVA)

Economic value added or EVA is a corporate accounting concept to define the real value created by a company in relation to the funds invested in it. This metric was…

Effective hedging relationship

Hedging relationship effectiveness is a concept introduced by the hedge accounting standards, referring to the extent to which changes in the fair value of a hedged item are offset by…

Enterprise currency management (ECM)

Enterprise currency management is a software category that includes a wide range of solutions designed to automate the different aspects related to corporate foreign currency transactions, including the strategies to…

Equity funding

As a result of the sharp reduction in bank lending to companies after the Global Financial Crisis, equity crowdfunding has been the solution for many budding start-ups, providing much needed…

Euro

The official single currency used by the current 19 members of the eurozone. It came into being officially on January 1, 1999 as the common currency for an initial 11 countries…

European Markets Infrastructure Regulation (EMIR)

The European Markets Infrastructure Regulation (EMIR) is an EU regulation implemented by the European Securities and Markets Authority (ESMA) that came into force on 16 August 2012. Its primary aim is…

Exchange rate

An exchange rate is the amount of one currency that is needed to buy one unit of another currency. For example, the euro/US dollar exchange rate, also written as EURUSD,…

Exchange Rate Forecast

Exchange rate forecasts are compiled by many analysts and financial institutions for different currency pairs, despite the volatile nature of currencies and the difficulty in predicting their movement. Check out the…