Evaluate your trading methods and risk management
The evaluation of transactions in international trade is related to analyzing the risk impact of exchange rate and profit changes. Analyzed alternative methods for measuring the impact of exchange rates and risks on the total amount of financial business. As indicated in this article, the advantages of alternative methods depend on the user's purpose. During the period under study, the use of futures contracts to reduce cash settlement risks also resulted in a decrease in the profits of foreign financial bonds. In counter conditional transactions, the use of cash settlement will reduce the income coefficient of the analyzed countries, but will increase the correlation coefficient between the debt indicators of these countries and those of the United States. It also indicates that combining foreign exchange forward settlement with reverse conditional cash payment forward debt and financial debt without such conditions can maximize the profit risk ratio. Therefore, risk management under cash settlement conditions can be seen as a continuous and proactive management decision that reflects investors' commitment to profit targets in the presence of financial conditions changing risks.