This document discusses risk management in foreign exchange markets. It introduces foreign exchange and explains that currencies are traded globally almost 24/7. It then outlines the research methodology, which aims to understand hedging tools used in foreign exchange and various concepts. The document discusses exchange rate systems, risks involved like currency fluctuations impacting revenues and costs. It also explains hedging tools like forward contracts, which use forward rates, and option contracts using calls, puts, strikes and being in, out or at the money. In conclusion, it notes the daily foreign exchange market turnover is estimated at $3.98 trillion according to BIS and that forex trading risks can be managed with various strategies.