Zachary Anthony246_ Sanchez

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How do multinational corporations use forex for hedging?

Corporations exposed to global revenues hedge forex risk to protect earnings. For example, Apple hedges EUR and CNY exposure. Institutions facilitate corporate hedging through forwards, options, and swaps. Benefits: reduces earnings volatility and shareholder risk. Risks: poor hedging strategies may cause losses. Retail traders often overlook corporate flows, but they significantly influence supply and demand. Corporate hedging proves forex is not only speculation—it is a vital business tool for stability in international commerce.