Article summary

this article illustrate the case of the Moroccan market about Foreign-exchange trading risk
management with value at risk ,
so the general point is that currency risk in this hand is one of the main risks that investors in
emerging markets may undertake so these markets often have few financial instruments for
creating common hedges for such financial exposure ,and in an other hand the principal of
VAR Value at risk is a method of assessing market risk that uses standard statistical
techniques routinely used in other technical fields. and it measures the worst expected loss
over a given time interval under normal market conditions at a given confidence level.

the steps to measure the ​market risk of a trading , and we are talking about case of the
Moroccan market , the first one is to identify the market, second one is the prices of the
individual foreign exchanges determine the value of the position. we can conclude from this
idea that the historical time-series databases of the Moroccan Dirham some major hard
currencies were gathered and adequately adapted for the purpose of this research. so in this
study the foreign-exchange rates that are used are MAD/EURO , MAD/GBP; MAD/USD
USD/EURO ;USD/GBP ; then they did an anlyses by a statistical and matimatical study; we
can summarize them as following; Matrix-algebra approach is used to simplify the
calculation process, and Trading risk management and control models ; so the point is that
Trading risk-management analysis and control reports were illustrated for several case
studies. In all these case studies, foreign-exchange trading risk reports with different asset
allocation percentages, short selling and unwinding periods were all investigated and
depicted.