This article first appeared in Profit & Loss. It was written by Ken Monahan, Greenwich Associates, specifically for Bloomberg. Corporations are among the most important customers of FX trading desks.

Companies often try to protect their assets from various risks in a process known as hedging. Think of hedging as being similar to buying auto insurance. When you're out driving your car, there is a ...

ProShares Short Dow30 ETF is a popular instrument for shorting the Dow Jones Index. The DOG ETF seeks daily results that correspond to the inverse performance of the Dow Jones Industrial Average. DOG ...

The leveraged biotechnology ETFs (LABU, LABD) have the worst monthly decays on this list with drifts of -1.15% and -1.27%, respectively. The leveraged bear semiconductors ETF SOXS has the worst annual ...

The recent increase in financial markets volatility, driven by an expectation of continued rate hikes along with an unprecedented choice of financial markets instruments, makes hedging any corporation ...

A detailed analysis examines various methods to protect investments when market downturns occur. The article reviews several techniques and provides insight into how each strategy works. Investors can ...

Basis risk refers to the potential mismatch between the value of an asset or liability and the financial instrument used to hedge or manage its risk. This divergence can result in unexpected gains or ...