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.
A foreign exchange rate is the relative value between two currencies. In particular, the exchange rate is the quantity of one currency required to buy or sell one unit of the other currency.* Jump straight to today's exchange rate on Yahoo here or keep reading to understand what the exchange rate means to you. In travel, the exchange rate is defined by how much money, or the amount of a foreign currency, that you can buy with one US dollar. The exchange rate defines how many pesos, euros, or baht you can get for one US dollar (or what the equivalent of one dollar will buy in another country). Why Travelers Need to Know What the Exchange Rate Is