The topic is forex risk management but i need to hand in the Literature review

The topic is forex risk management but i need to hand in the and backgroud chapter on monday - Literature review ExampleThe market also does asset valuation, arbitrage, raise capital, commercial transactions and invest in bond, stock or money. Besides, alone these, the market also does forex risk management (Levinson, 2005). Forex has four interdependent spot markets where currencies are coverd. These are the spot market, futures market, option market and derivatives market. Most of the time, these markets are availed by key actors in direct and indirect investments, such as, exporters, importers, investors, speculators, and governments. Trading is often done at interbank markets and financial institutions although the most common bullion traded is the US dollars. transmute rates are managed either in fixed rate, semi-fixed systems, and floating rates. Forex Risk Management Forex risk management is basically protecting a foreign currency from losing value against the domestic (Le vinson, 2005) currency before an export payment is received as well as enabling markets to attach price to risk, permitting firms and individual to trade risks until theyd hold to what they wanted to retain (Russell, 2011). ... Investors, either individual or institutional, who are motivated to and to gain capital are assured of this markets system of resiliency in risk management (Russell, 2011). This is further supported by the institutionalization of formal markets where investors can immediately raise capital by exchange shares at the stock exchange (Russell, 2011). The foreign exchange is a huge trading market that is geographically dispersed and exchanges could either be favorable or not depending on the measures of risk management employed otherwise it can be limiting trade lot size, hedging, trading only during certain hours or days, or knowing when to take losses(Milton, 2011). Forex trading may seem easy, but in all honesty so difficult, indeed. Traders would either exper ience abrupt corrections in currency exchange rates bewildering variations in exchange rates susceptibility to markets rapid change for profit opportunities mazed payments delay in the confirmation of receivables and fees discrepancy of bank drafts received and the contract price (Milton, 2011). Tools for Forex Risk Management How should a trader control his loses? Expert in trading currency suggested that investors should think twice to set limits on potential pressure or drawdown one is willing to stake in trading. They also give the axe make use of correct lot sizes and to start at lower amount depending on ones level of risk tolerance (Easy Forex, 2011). merely for experts, the best rule is to utilize small account balance. They also advised tract overall exposure to be abreast of the developments and correlation of currency pairs (Easy Forex, 2011). happen upon complete risk control and define your opportunity when the right