PENTAPARTHI PALLAVI , DR. K MADHU BABU 03 08 Foreign exchange risk management FERM involves using both internal and external techniques such as forwards futures options and swaps that are called as currency derivatives The firms with greater growth opportunities and tighter financial constraints are more inclined to use currency derivatives The Forex market provides various derivative instruments to hedge against currency exposures such as currency forwards options futures and swaps The current article aims at studying various FERM techniques used in the Indian stock market industry and its impact on exchange gainlosses For this purpose foreign exchange cash flows arising out of imports and exports and exchange gainlosses of the companies from oct 2022 to dec 2022 It is observed from the study that only two currenciesUSD and EURhold command in the forex market and other currencies are being used minimally It is also noted that there are several currency derivatives available to the business firms such as forwards futures options and swaps for hedging currency exposure However among all these techniques forward contract is considered to be an effective hedging tool and easier to understand Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026