Open currency position
- The sum of the open currency spot position and the open currency forward position, being the measure of the foreign exchange risk.The open currency position is the difference between balance assets and liabilities in foreign currency plus the forward (conditional and unconditional) forex purchased and sales. The open currency position is the measure of the foreign exchange risk. Related position codes are:Open currency position per CCY.Open currency position per CCY group.Total open currency position.Related reports are:Inquiry of bank-rel-position.Open Currency Position.Overall Mismatch.Mismatch per Book.Mismatch per Product.Three position codes are defined to monitor the open currency position. The first one is for inquiry purposes and shows the open currency position per currency. Head Office provides the network with separate limits for currency groups and the total open currency position and therefore two positions are created to assign these limits. Both positions are the total of all positions in each currency irrespective whether the position is positive or negative.See also Position, position administration tables, Standard position codes, Combined position code, risk management, Foreign exchange risk, Forex, Open currency forward position, Open currency spot position, Mismatch, Interest risk, Liquidity risk, forward revaluation, interest revaluation, break even and Nostro projection.
International financial encyclopaedia . 2014.
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Open currency position report — The open currency position report gives information about the open currency position (OCP) per currency, OCP per currency group and the total OCP. The open currency position is the measure of foreign exchange risk. It is the difference between… … International financial encyclopaedia
Total open currency position — The sum of the absolute values of the open currency positions expressed in an agreed upon currency … International financial encyclopaedia
Open currency spot position — Difference between assets and liabilities plus difference between amounts of spot purchases and spot sales concluded and recorded until delivery date under contingent assets and contingent liabilities in a particular foreign currency. See also… … International financial encyclopaedia
Open currency forward position — Difference between the sum of conditional and unconditional sales (spot sales excluded) and the sum of conditional and unconditional purchases (spot purchases excluded) in a particular foreign currency, whereby the values of options are… … International financial encyclopaedia
Position reports — Reports include: Account type info with default position code Bank related positions and limits Country exposure versus limits Customer daily position Customer position Foreign exchange position statement FX results Mismatch … … International financial encyclopaedia
Position update — Update options specify how the position should be updated. In automated systems you often have to specify what the system is to do. The following options are often possible: update on line or not on line. check limit on line during update… … International financial encyclopaedia
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