How certain is your profit?
Hedging can help you to mitigate the risk of international transactions. When paying for goods in foreign currency your costs will fluctuate and margins become unpredictable, putting your cash flow at risk. Using currency hedging tools you can lock in a rate, avoid unexpected downward movements and keep costs within budget.
Market volatility exposes your cash flow to unexpected currency movements and puts your profit at risk.
Hedging helps you reliably forecast your costs, stabilise cash flow and protect your profits.
4 step plan to securing your profit:
Increase control and certainty over your profit margins using our 4 step risk management plan:
Reviewing your exposure to currency markets and the potential impact on cash flow
Determining your risk management aims and foreign exchange budget
Selecting the tools best suited to achieving your objectives and protecting profit
Delivering your plan, with regular performance evaluation and development
Conduct international business with confidence
A tailored approach
Our industry experts will help you to manage your hedging practice in the most efficient way possible by learning about your business, listening to your objectives and identifying your unique requirements.
Rely on our team to stay up to date on the rapidly changing market conditions, so your hedging decisions are always based on the most accurate market intelligence.
The right tools for the job
Our range of hedging products can be used in different combinations to help you:
- Forecast and protect against risk impact
- Gain visibility of costs
- Set prices more accurately
Secure a specified exchange rate for a future transaction. The forward contract allows you to set your prices with a budget in mind.
Market orders help you execute a trade at your ideal rate when the time is right. Agree the amount of currency you need to transfer, and your target rate. If the market moves to your desired rate, the trade is automatically executed on your behalf.
An Option allows you to pay a premium to secure the right to trade at a specified rate without the obligation to do so. Options give you the security of a guaranteed rate but the freedom to benefit from positive market movements should you decide not to exercise the right to trade. We have a wide range of options that can be used to protect your business from risk and keep costs within budget.
Options are provided by our subsidiary Currencies Direct Financial Markets (CDFM). FX derivative products can carry a high level of risk and may not be appropriate and/or suitable for everyone. Please take all reasonable steps to understand certain key concepts before transacting in FX derivative products. More information is available in our product disclosure statement.
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Find out more about our hedging tools