Reduction of currency risks in small businesses

Every day people face a lot of risks. This has become an integral part of every person''s life. Risk is the probability of the occurrence of an event that led to loss and negative consequences at a certain point in time. To date, there are many types of risk, this article will consider currency risk. Exchange rates fluctuate constantly if they are given the opportunity to respond to demand and supply in foreign exchange markets. There are many factors that affect exchange rate fluctuations, and they are all related to supply and demand.