Forex Risk Management

Proprietary Tools. Banking Experts.  
Transaction based Solutions.
Import/Export Payments
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1. Advisory and Execution of transactions. 2. Monitor each and every import / export payment. 3. Advisory on market timings. 4. Bank negotiations to get best price.
Hedging Strategy Management
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1. Assistance on when to hedge or not to hedge. 2. Suggest an ideal time period, strategy and amount to hedge according to the market. 3. Also on cancellation or early utilization of transactions.
Reducing overall finance cost
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1. Audit Bank charges/Interest outgo without change of bank. 2. Suggest best type of loan product according to business needs. 3. Advise on when to borrow in USD or INR.

Free Q&A with Experts on Forex Risk Management

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We save those costs which business normally can't identify

You put a lot of heart to earn your money, we get that. Which is why we bring efficiency and accountability along with our services.
Transaction Sharing

Share your import/export transaction and let us do all the work on it. This releases your precious bandwidth and you see us in action!

Analyze and Market Tracking

With the help of our Proprietary Tools we analyze the transactions and track the market. Suggest exclusive strategies of execution.

Execution

At good market levels, we negotiate with the bank and get the best possible rate. Conduct a conference call with client and bank if needed.

Tips and Techniques of Forex Risk Management

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Each business has a different risk appetite for forex risk. Generally, business with low profitability finds it very difficult to withstand the adverse impact of currency fluctuations. Therefore one needs to decide how much fluctuation can one handle and accordingly decide forex hedging strategies. This can also help understand whether to put any risk management plan in place, if at all required.

Any business taking exposure in forex should set stop losses for forex positions. Stop losses help you control the quantum of losses to a specific level. This is a powerful forex risk management tool in the hand of business.

One must keep an eye out on exposure to a particular currency across various transactions. Eg. If you are short on INR/USD and long on USD/JPY, and USD takes a nosedive you will bear losses on both the trades. Keeping overall exposure limited can go a long way in insulating you from the risk of fluctuations and is an important forex risk management technique.

Forward is nothing but agreeing to buy or sell an asset like currency in the future at a specified price. The price at which the contract is signed is called forward rate, but the transaction happens at a future date. This helps business in minimizing the forex risk by locking future payments or income today at a fixed rate, thus avoiding risk arising out of currency fluctuations.

As per a definition, Options are financial instruments that are based on underlying securities such as stocks or currency. That is why they are also called derivatives. An options contract offers the business, an opportunity to buy or sell—depending on the type of contract they hold—the underlying asset.

Frequently asked questions on Forex Risk Management

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Can I find forward premium rates online?

You may try researching about it. Our experience on online sites, says that it is easy to get near accurate spot prices, but forward premium is generally not accurate.

My exports are in EUR, shall I take packing credit in EUR or in USD and why?

Clearly, you should take in EUR to mitigate currency risk, Additionally, the Libor rate in EUR is negative or near zero as compared to USD.

Is there a cost of hedging currency risk?

There is no additional cost for hedging. Bank must set up internal credit limit for its customer to hedge.

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