1. What are the characteristics of foreign exchange trading risks? What are the main types of risk?

Foreign exchange risk has three main characteristics: contingency, uncertainty, and relativity.

a. Contingency is that foreign exchange risk may or may not occur, does not have the inevitability;

b. Uncertainty is that foreign exchange risk to hold foreign exchange or foreign exchange needs of economic entities may be losses or profits, it depends on the exchange rate changes in the economic entity is a debt position or other;

c. Relativity is that foreign exchange risk to one party is a loss, to another party is bound to bring profit. Exchange rate risk, also known as foreign exchange risk, refers to the possibility of economic entities holding or using foreign exchange in economic activities, due to changes in the exchange rate and losses.

2. Foreign trade enterprises how to reasonably avoid the risk.

Risk forecast refers to the possible risks in advance. When we first contact a certain industry or a certain supplier, there will certainly be a lot of uncertainty factors in the process of the transaction.

In order to avoid problems, we must collect a lot of information in advance and make a basic prediction of the risks that may arise in the process of cooperation in the future.

3. What are the foreign exchange risks faced by enterprises? What is the difference?

The main foreign exchange risks faced by enterprises are transaction risk, also known as transaction settlement risk, which refers to the risk of changes in the value of assets receivable and debts payable due to exchange rate fluctuations between foreign and local currencies in transaction activities denominated in foreign currencies.

4. Do this 1 point, you can 100% reduce the risk of foreign trade.

Risk of non-acceptance: When goods are not accepted, they are stranded in foreign ports, which may result in significant demurrage charges. This can be a long and difficult process due to the distance and different legal systems.

You can find a local credit agency to check whether the other party has information about malicious delinquency and malicious non-receipt; find a local expert (credit, collection, legal, business negotiation, etc.) from the DCA platform so that you can get fair and reasonable treatment and minimize the loss.