Open currency position

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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Look at other dictionaries:

  • 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

  • Standard position codes —   The following position codes are standard:   Open currency positions   Open Currency Position per Currency.   Open Currency Position per Currency Group.   Total Open Currency Position.   Mismatch positions   Overall Mismatch Position Spot.… …   International financial encyclopaedia

  • Foreign exchange risk analysis on foreign currency interest report —   A standard position report which analyses the foreign exchange risk on interest by comparing defined risks with costs and expenses. It gives a total cumulative mismatch for the foreign exchange risk as well as a mismatch for each individual… …   International financial encyclopaedia

  • Open interest — (also known as open contracts or open commitments) refers to the total number of derivative contracts, like futures and options, that have not been settled in the immediately previous time period for a specific underlying security. A large open… …   Wikipedia

  • Mismatch position —   For Forex Book: Difference between amounts of outstanding forward purchases and outstanding forward sales, per currency resulting from outstanding forward contracts measured over a defined period.   For Money market Books: Difference between… …   International financial encyclopaedia

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