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All termsRiskWorth knowing

Currency Risk

Currency risk is the risk that changes in exchange rates affect the value or returns of an investment when measured in the investor's own currency. It is also called foreign exchange risk or FX risk.

Why it matters to you

Blockchain markets make it easier for investors to access assets from different countries, but international access does not remove currency exposure. An investment can perform well in its local currency while producing a weaker return for an investor whose home currency strengthens against it.

Terms that sit next to this one

Foreign Exchange, Currency Hedging

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