Categories of Hedgeable risk

For the subsequent categories of the risk, for exporters, that the value of their accounting currency will fall adjacent to the value of the importers, also known as volatility risk.

Futures contracts and forward contracts are the ways of hedging against the risk of adverse market movements. These initially developed out of commodity markets in the nineteenth century, but over the last 50 years a huge global market developed in products to hedge financial market risk.