The Multi Currency Perspective on Risk Management

When the risk in the book is very large, more and more different liquidity pathways may become cost effective. We are using this triangle that Olivia mentioned we are increasing a position in our more liquid correlated currency pair to balance risk,. There is a potentially extra cost involved because we have to trade in and trade out. But this cost is justified by risk reduction. And as we said repeatedly throughout this podcast, it all comes down to risk management.