Compare the financial products available on international markets . Devise and apply appropriate strategies using derivatives to manage currency risk.

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International financial markets offer a wide range of products, depending on their market and type. Stocks, bonds, mutual fund and ETFs are all traditional investment instruments that provide exposure to global asset classes. There are also derivatives like futures and option that can be customized to suit the individual needs of investors.

To manage currency risk in an international portfolio, derivatives can provide both hedging & speculative opportunities. Forward contracts and options can be used to hedge against currency fluctuations, while still preserving upside potential. Similarly , spot/futures contracts – commonly referred to as currency swaps – allow investors to benefit from price changes without necessarily having to own any underlying physical assets (e . g foreign currencies ) . For those looking more aggressive returns , leverage-based instruments like Forex trading give access to leveraged positions with large potential profits & losses — though caution should be exercised due their high risk nature

Investors should understand the different derivatives and how they work in various market conditions. This will allow them to take action when needed. Additionally , professional advice may also be sought if needed in order ensure successful implementation & achievement of desired outcomes.