search query: @indexterm Foreign exchange / total: 493
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Author: | Carlson, J. |
Title: | Risk aversion, foreign exchange speculation and Gambler's ruin |
Journal: | Economica
1998 : AUG, VOL. 65:259, p. 441-454 |
Index terms: | ECONOMICS RISK AVERSION FOREIGN EXCHANGE |
Language: | eng |
Abstract: | The apparent persistence of unexploited opportunities for expected profits in foreign exchange markets suggests highly risk-averse market participants. Financial institutions put tight limits on the foreigh-exchange positions they may have at risk at any time, despite beliefs that the odds are favourable that the positions will be profitable. This "safety-first" practice is consistent with keeping the probabilith of ruin low enough to be of no practical concern. |
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