Categories: Ratio

Asset Coverage Ratio: Understanding Forex Trading Risk

The Asset Coverage Ratio or ACR is a measure used by forex investors to determine the risk associated with their investments. ACR measures the ratio of total assets to total liabilities and is an important gauge of the strength of a company’s balance sheet. It is important for forex investors to keep an eye on this ratio, as changes in it can signal increased risk for their investments. A high ACR indicates that the company is able to easily cover its debts with its current assets, while a low ACR could be an indication of liquidity problems or other financial issues. Monitoring ACR is a great way for forex traders to reduce the risk associated with investing in currency markets.

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