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modforretning

English translation: offsetting/set-off transaction


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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Danish term or phrase:modforretning
English translation:offsetting/set-off transaction
Entered by: Diarmuid Kennan
Options:
- Contribute to this entry
- Include in personal glossary

13:20 Sep 20, 2010
Danish to English translations [PRO]
Bus/Financial - Finance (general)
Danish term or phrase: modforretning
Da terminskontrakterne havde en lang løbetid, var det muligt at hjemtage en gevinst ved at indgå en modforretning med samme løbetid i tilsvarende valuta. I et meget svingende marked kan det være formålstjenligt at indgå løbende modforretninger, da selskabet køber USD til en lavere kurs, end det er forpligtet til at levere, vil gevinsten være risikofri for selskabet. Terminsforretningen blev dog kun indgået som følge af H2 B.V.s dollartilgodehavende.
Diarmuid Kennan
Ireland
Local time: 12:43
offsetting transaction
Explanation:
I think this is what you are looking for
Selected response from:

Chris S
United Kingdom
Grading comment
Thank you, I went with set-off translation in the end
4 KudoZ points were awarded for this answer



Summary of answers provided
4parallel (or concurrent) companyAndrew Alix
2 +1offsetting transactionChris S


  

Answers


21 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
parallel (or concurrent) company


Explanation:
What is being done is to start up a firm with the same term life as the contract in order to protect the income from swinging currency values. Since the Contract is for a specific sum in USD, this could result in a loss for a long term contract if the currency drops in value.

Andrew Alix
United States
Local time: 06:43
Native speaker of: Native in EnglishEnglish
Notes to answerer
Asker: I'm not so sure. I suspect that forretning here refers to a transaction, not a company. I was expecting something like "counter-transaction", but I will wait and see if there are other suggestions.

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1 hr   confidence: Answerer confidence 2/5Answerer confidence 2/5 peer agreement (net): +1
offsetting transaction


Explanation:
I think this is what you are looking for

Chris S
United Kingdom
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 23
Grading comment
Thank you, I went with set-off translation in the end

Peer comments on this answer (and responses from the answerer)
agree  Andrew Alix: I agree. My answer above was in line with setting up a counter firm. Don't know what I was thinking.
2 hrs
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