The manageable method of getting market and currency demand leads to one of the most important risks related to the planet on entire wide foreign exchange. Between the four risks in the foreign exchange market one of them is Exchange rate risk. The change in the currency price is responsible to a fantastic position that leads to improve the danger rate. By managing the positions the losses might be lessened and profits might be gained. The traders and banks based on the experiences, analysis and skills are the main dealers in the market of currencies that utilizes certain limits to handle issues.
To minimize the exchange risk rate, the limits are divided into two parts: position limits and loss limits. Losing limits are taken into consideration to avoid weak losses produced by the traders. Losing limits have been regulated the senior officials of the dealing centers, it is based in addition to monthly on a day to day basis. The limit of position is further divided into overnight position limit and daylight limit. The overnight daylight limit is lesser compared to the daylight limit that determines the trading level and the position by that your trader reach its peak. The overnight limit determines the incredible position kept by the traders.
