Foreign Exchange Risk Management
It’s easy to get caught out by foreign exchange volatility when buying or selling currency. Our foreign exchange risk management solutions can help to protect against adverse market movements.
With our FX risk management solutions you can:
- Lock in a favourable exchange rate with a forward contract
- Set a lower or upper limit at which you will buy or sell currency with a limit order
- Protect against financial loss when markets are volatile with a stop loss
Managing exposure to currency risk can help to protect your money
The values of major currencies fluctuate by the second, sometimes drastically. This can pose a significant financial threat to businesses and individuals trading in currency. To mitigate exchange rate risk and maintain stability, opt for one of our FX solutions below:
Risk Management Tools
Lock in a favourable exchange rate with a forward contract.
Set a lower or upper limit at which you will buy or sell currency with a limit order.
Protect against financial loss when markets are volatile with a stop loss.
A forward contract lets you fix a favourable exchange rate for the future: you'll always know the rate you’ll get even when markets are volatile.
A limit order lets you set the rate at which you want to exchange your money from one currency to another. If that rate becomes available, the exchange will occur automatically.
A stop loss allows you to set an exchange rate which, when reached, triggers an instruction to buy or sell currency. It acts as a safety net to mitigate FX risk.
Talk to the specialists
If you’re looking for guidance around mitigating exposure to currency risk, talk to the experts at Clear Currency. Our team of specialists can help guide you on the best tools to use to ensure your business stays profitable. Sign up for an account today or talk to one of our experienced team. Call +44 (0)20 7151 4832 or email email@example.com.
Currency Risk Management FAQs
Recent Business Articles
How To Mitigate Foreign Exchange Risk
Each exchange rate movement will affect how much you receive from sales and what you pay to suppliers. If it moves in your favour, you stand to gain, but it can have a crippling effect on your operations if the rate goes in the other direction.
How To Calculate An Exchange Rate
Exchange rates refer to how much it costs to exchange one currency into another. As they fluctuate second by second, how much your currency is worth can vary at any given time.