Everyday Hedges Most people have, whether they know it or not, engaged in hedging. For example, when you take out insurance to minimize the risk that an injury will erase your income, or you buy life insurance to support your family in the case of your death, this is a hedge.veryday Hedges Most people have, whether they know it or not, engaged in hedging. For example, when you take out insurance to minimize the risk that an injury will erase your income, or you buy life insurance to support your family in the case of your death, this is a hedge.
Definition. Rate at which one currency may be converted into another. The exchange rate is used when simply converting one currency to another (such as for the purposes of travel to another country), or for engaging in speculation or trading in the foreign exchange market.here are a wide variety of factors which influence the exchange rate, such as interest rates, inflation, and the state of politics and the economy in each country. also called rate of exchange or foreign exchange rate or currency exchange rate.
CURRENCY CONVERTER. Currency exchange rates displayed or used by the Currency Converter are exclusively for information purposes only as currency excahnge rates for actual transactions may vary. AIA cannot guarantee the accuracy of these exchange rates.