7. Forex from the Inside

In this chapter, participants in Forex—from multinational corporations to international banks, to FCM dealers, to retail traders—describe their roles in the currency markets.

Joachim Herr

Joachim Herr is the head of risk management at BMW International. In this interview, he discusses how BMW handles currency exposure and trading methodologies.

Whenever we sell a car—for example, in Thailand—we get Thai baht (THB), but our cost basis is to a large extent in euros. What we need to make sure of from a currency perspective is that the THB revenue we receive is worth more than our euro-denominated costs in order to stay comfortable. Without risk management, the large exchange rate fluctuations would lead to times of very ...

Get Forex Revolution: An Insider's Guide to the Real World of Foreign Exchange Trading now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial