Up to three currencies can be involved in one contract:
| • | Pricing Currency (Avg price) |
| • | Contract Settlement Currency (Final contract price) |
| • | Position Currency (Position) |
The Forex risk between Pricing and Settlement currencies is called Settlement Risk.
| • | In the example, it would be the risk between USD and EUR. |
| • | For Settlement risk, the rate is usually fixed. |
The Forex risk between Pricing and Position currencies is called Position Risk.
| • | In the example, it would be the risk between USD and GBP. |
