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Risk management tools

Protect your business from foreign currency fluctuations

Use a combination of financial instruments such as forwards and currency options to protect your business from foreign currency fluctuations.

Forward Contracts

Lock in the current exchange rate for a set period of time (up to 12 months). This provides you with certainty and insures your profits against adverse currency fluctuations.

Currency Options

Currency Options allow you to effectively manage risk and, at the same time, take advantage of positive changes in market exchange rates. They provide protection against adverse market developments while giving opportunity to participate in favourable moves, usually for zero cost. They may be used alone or in combination with other hedging tools, such as Forward Contracts and Market Orders, to offer a business a powerful risk management strategy.

How our Currency Options work

An introduction to Currency Options

Currency Options can seem complicated, and are often thought of as products used by bankers or investors to speculate on the money markets. However, this is not entirely true. Read more.

Tailoring Options to suit your needs

Options are flexible products and there are numerous ways of tailoring them to your needs. Read more.

How to flex your Options

See how you can flex your options to achieve benefits such as increasing the possibility of greater participation. Read more.

Taking early delivery of an Option

If you take out an Option for a date in the future but find that you need the funds beforehand, it is possible to take early delivery of your funds. Read more.

Closing out an Option

Determine the value of the option when it is no longer suitable for your business. Read more.

Am I getting a good deal?

How to asses an Option Contract and see if you are getting value for money. Read more.

What is a Margin Call?

Understand what costs are involved when reviewing your Option Contract and find out how the spot rate can affect your contract. Read more.

Is hedging right for my business?

Forwards and Options FX hedging products are derivative products which involve risks due to the volatility of the FX markets. For example, if you book a Forward Exchange Contract and the spot market ends up moving in your favour, you cannot participate in the more favourable spot market. You are locked in for your fixed amount, at the fixed rate, for the fixed date.

Options can be quite complex. How and when you employ them depends on your unique business, and your short and long-term plans. It is important to engage with a specialist that has in-depth knowledge of Currency Options. The drawback of an Option is that typically you must agree to a protection rate that is less favourable than the current market forward rate, in exchange for the potential participation you might achieve.

What's your risk management strategy?

Speak to one of our currency risk specialists to find out how our products can help you protect your bottom line from currency fluctuations.

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Ready to get started?

Contact us on 0800 026 0314*

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*Calls to this number are normally free for people ringing from a "fixed line" phone – but charges may apply if you call from a mobile phone.