The purpose of hedging in forward exchange markets is to limit losses resulting from unexpected future changes in spot exchange rates.

Name: The purpose of hedging in forward exchange markets is to limit losses resulting from unexpected future changes in spot exchange rates.
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Hedging in forward exchange markets involves entering into a contract to buy or sell currency at a fixed price and date in the future, thus reducing the risk of losses due to unpredictable changes in spot exchange rates.

The Purpose of Hedging in Forward Exchange Markets Is to Limit