In the previous module, we defined three types of foreign exchange (forex) risk and presented examples of its potential financial impacts. You might ask, “OK, I get it, but what to do about it?” This week we answer that question with a discussion of forex hedging techniques. Hedging methods are generally tools used to reduce financial risk. In the case of forex risk, we will cover non-financial hedging methods such as cash flow netting, as well as financial hedging methods including forwards, swaps, futures, and options. In the second lecture we will review the amazing global financial markets where foreign exchange and forex hedging transactions occur.