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  • FX Position Calculation

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    majahangiri
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    An open foreign exchange position exists when the assets in a foreign currency do not equal the liabilities in that same currency. The value of the open position is the difference between foreign currency assets and liabilities. An open position is considered long when assets exceed liabilities and short when liabilities exceed assets. Foreign exchange assets and liabilities include both on and off-balance sheet items that are denominated in foreign currencies.

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    An open foreign exchange position exists when the assets in a foreign currency do not equal the liabilities in that same currency. The value of the open position is the difference between foreign currency assets and liabilities. An open position is considered long when assets exceed liabilities and short when liabilities exceed assets. Foreign exchange assets and liabilities include both on and off-balance sheet items that are denominated in foreign currencies.

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    Attribution Non-Commercial (BY-NC)
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    25 views1 page

    FX Position Calculation

    Uploaded by

    majahangiri
    An open foreign exchange position exists when the assets in a foreign currency do not equal the liabilities in that same currency. The value of the open position is the difference between foreign currency assets and liabilities. An open position is considered long when assets exceed liabilities and short when liabilities exceed assets. Foreign exchange assets and liabilities include both on and off-balance sheet items that are denominated in foreign currencies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    of 1

    The foreign exchange position shall be considered open if assets in a certain foreign currency are not equal to liabilities

    in the respective foreign currency. The value of the open foreign exchange position represents the difference between the amount of assets in a certain foreign currency and the amount of liabilities in the respective currency. The open foreign exchange position is long if the sum of assets exceeds the sum of liabilities in the respective foreign currency. The open foreign exchange position is short if the sum of liabilities exceeds the sum of assets in the respective foreign currency. 1) foreign exchange assets, include: a) on balance sheet asset; and b) off balance sheet or contingent assets including outstanding FX purchases, and other off-balance-sheet assets.

    2)

    foreign exchange liabilities, include: a) on balance-sheet foreign exchange liabilities; and b) off balance sheet or contingent liabilities: outstanding FX sales in foreign currency, and other foreign currency off-balance-sheet liabilities.

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