Author(s)

Haoran Wen

Corresponding Author

Haoran Wen

Abstract

This paper gives an in-depth discussion aiming at the risks which will be discovered in the financial markets. The risks are an important component existing in the financial markets, so the risk management is very important, this paper considers the two main risk: interest rate risk and exchange rate risk. Aiming at these risks, there are some risk management methods, including internal and external method to manage and minimum the financial market risks.

Keywords

Interest rate risk; ‘over the counter’ market; Exchange traded instruments; Exchange rate risk; Forward contract