How can Forex Hedging secure your business?

Currency risk is a common challenge for SMEs whatever their industry. Due to the uncertainty and turbulence in the global political and economic environment in the last decade, it is important for SME businesses to be aware of how currency volatility could impact their business. Often, SMEs will employ the pricing strategy of adding a few percentage points on top of their profit margin however, this is not always effective. Customized forex hedging solutions may be a better option. Benefits of forex hedging include a transparent and straightforward service management fee (no brokerage commission), allowing a business to access the market directly with no counterparty risk.

Tools for hedging foreign exchange risk

Futures – A common type of financial instrument with conditions for currency exchange. Futures allow a trader to lock in an exchange rate at set prices that are made known upfront as to prevent losses from potentially unfavourable currency.

Options – Are another form of insurance against foreign exchange risk. Options provide a business owner flexibility, and the right to buy or sell currency at a specific price on or before a certain date.

If you are interested in exploring these options, please do not hesitate to send your inquiry to contact@orbis-alliance.com and a member of our team of experts will get back to you shortly.