currency derivative
[/ˈkɜːrənsi dɪˈrɪvətɪv/]
nounpl: currency derivatives
derivativo de moeda
1. A financial instrument whose value is based on the exchange rate of two currencies, used for hedging or speculative purposes
The company purchased currency derivatives to protect against adverse exchange rate movements.
A empresa adquiriu derivativos de moeda para se proteger contra movimentos adversos da taxa de câmbio.
2. A contract between two parties whose payoff depends on the relative value of foreign currencies
Currency derivatives include forwards, futures, options, and swaps denominated in different currencies.
Os derivativos de moeda incluem contratos a termo, futuros, opções e swaps denominados em diferentes moedas.
Currency derivatives are essential tools in international finance, particularly important in Brazil due to the volatile Real exchange rate and in the USA for multinational corporations managing currency exposure. In Brazil, these instruments are heavily regulated by the Central Bank (Banco Central do Brasil) and traded on B3 (Brasil, Bolsa, Balcão). The term reflects the sophisticated financial market jargon used by traders, risk managers, and financial institutions across both countries.
Related Idioms & Phrases
hedge currency risk with derivatives
enter into a currency derivative contract
settle a currency derivative position
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