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> Hedging
__________________
> Our Software
__________________
> Mobile Channels
__________________
> Company News
__________________
> Disclaimer
__________________
> Contact us
__________________
| Why Your Company Should Develop a Hedging Plan |
| . |
| Real-time Signals | Charting & Analytics | TA Newswire |
| . |
Assisting you Managing Currency Risk in a Volatile World
Solutions for International Importers, Exporters & Investors
Solutions for International Importers, Exporters & Investors
- Currency or commodity hedging acts like an insurance policy: The fraction of 1% of the asset value you
spend on hedging protects your asset from a negative shock. A hedging strategy helps you reduce
currency exposure and the risk associated with currency movement.
- Hedging is easy to do, easy to understand (once it has been explained), and relatively inexpensive.
- If you had a USD$1 million foreign asset to be realized in 45 days, what is $900* worth to you? It’s
probably less than the sales staff spent to win that sale. Are you willing to gamble that future exchange
rates will be favorable to you, when $900* or so would remove this risk? (Check with your bank, but the
charge will be near $900, if not higher. We can usually find you a better alternative at better rates)
- Fluctuating exchange rates is a problem for trade-engaged businesses of all kinds because it can result
in unpredictable profit margins. Whether you just subscribe for strategy and advice or have us actively
assist in your hedging program, our expertise will allow you to get on with your core operations while we
monitor the markets for you.
- In industries where profits margins are tight, (e.g. agribusiness, furniture, electronics, automotive,
textiles) short-term swings in the value of the US Dollar, Euro Yen etc can easily lead to losses. The time
when you could leave it to chance has passed. The risk of not hedging is simply too high to ignore, and we
are here to assist you every step of the way.
- Furthermore, profit volatility negatively impacts the company’s ability to access bank lending, since it
increases risk for bankers analyzing a firm’s income statements. We can show you how to mitigate
currency risk and indeed provide you with additional tools that can create a more flexible and cost effective
hedging policy for your company.
- Most companies that manage foreign exchange risk are doing so to protect profit margins on export
sales. In fact, 85% of our clients name this as their primary objective in managing foreign exchange risk,
followed by increasing the predictability of profits which is a key objective for over half. Many clients started
with our advisory services before they stared actively hedging. After a while our consistently accurate
forecasts for currency movements help our client build the confidence and business case for board
approval for their own currency and commodity hedging policy.
- Some companies elect not to hedge because they are risk tolerant and feel the gains and losses will net
each other out over time. They may miss out on favorable movements in the exchange rate by hedging
against currency fluctuations but due to some or all of the following reasons they allow the markets to run
their course. If you have yet to seriously consider a hedging policy , sign up for our base advisory service
and see for yourself how much you could save by following our recommendations
- Many companies lack the internal resources to dedicate to managing this risk Often they lack internal
knowledge on how to manage foreign exchange risk. One meeting with us and we are confident you will
have a completely fresh perspective of hedging, and a clear understanding as to how it can help you
protect profits and create revenue certainty for your company.
- Some perceive hedging products from banks as too expensive
- Others see foreign exchange products as too speculative
- Still others complain their bank restricts further borrowing they we purchase non bank currency related
products.
Let us show you how to create your company's hedging policy and best practises and how to monitor and
evaluate its success. You can then compare the hedging products and services offered by your bank(s),
and if you require we will provide you with a free quotation so you can present a cost comparison to your
board showing both local onshore hedging alternatives, and the often more efficient offshore options.
Click here to read several Examples of Hedging, or just fill out the form below or email to have our expert
team get in touch
spend on hedging protects your asset from a negative shock. A hedging strategy helps you reduce
currency exposure and the risk associated with currency movement.
- Hedging is easy to do, easy to understand (once it has been explained), and relatively inexpensive.
- If you had a USD$1 million foreign asset to be realized in 45 days, what is $900* worth to you? It’s
probably less than the sales staff spent to win that sale. Are you willing to gamble that future exchange
rates will be favorable to you, when $900* or so would remove this risk? (Check with your bank, but the
charge will be near $900, if not higher. We can usually find you a better alternative at better rates)
- Fluctuating exchange rates is a problem for trade-engaged businesses of all kinds because it can result
in unpredictable profit margins. Whether you just subscribe for strategy and advice or have us actively
assist in your hedging program, our expertise will allow you to get on with your core operations while we
monitor the markets for you.
- In industries where profits margins are tight, (e.g. agribusiness, furniture, electronics, automotive,
textiles) short-term swings in the value of the US Dollar, Euro Yen etc can easily lead to losses. The time
when you could leave it to chance has passed. The risk of not hedging is simply too high to ignore, and we
are here to assist you every step of the way.
- Furthermore, profit volatility negatively impacts the company’s ability to access bank lending, since it
increases risk for bankers analyzing a firm’s income statements. We can show you how to mitigate
currency risk and indeed provide you with additional tools that can create a more flexible and cost effective
hedging policy for your company.
- Most companies that manage foreign exchange risk are doing so to protect profit margins on export
sales. In fact, 85% of our clients name this as their primary objective in managing foreign exchange risk,
followed by increasing the predictability of profits which is a key objective for over half. Many clients started
with our advisory services before they stared actively hedging. After a while our consistently accurate
forecasts for currency movements help our client build the confidence and business case for board
approval for their own currency and commodity hedging policy.
- Some companies elect not to hedge because they are risk tolerant and feel the gains and losses will net
each other out over time. They may miss out on favorable movements in the exchange rate by hedging
against currency fluctuations but due to some or all of the following reasons they allow the markets to run
their course. If you have yet to seriously consider a hedging policy , sign up for our base advisory service
and see for yourself how much you could save by following our recommendations
- Many companies lack the internal resources to dedicate to managing this risk Often they lack internal
knowledge on how to manage foreign exchange risk. One meeting with us and we are confident you will
have a completely fresh perspective of hedging, and a clear understanding as to how it can help you
protect profits and create revenue certainty for your company.
- Some perceive hedging products from banks as too expensive
- Others see foreign exchange products as too speculative
- Still others complain their bank restricts further borrowing they we purchase non bank currency related
products.
Let us show you how to create your company's hedging policy and best practises and how to monitor and
evaluate its success. You can then compare the hedging products and services offered by your bank(s),
and if you require we will provide you with a free quotation so you can present a cost comparison to your
board showing both local onshore hedging alternatives, and the often more efficient offshore options.
Click here to read several Examples of Hedging, or just fill out the form below or email to have our expert
team get in touch
| . |
| Independent Currency & Commodity Hedging Analysis for Emerging Market SME's |
| Online Currency & Commodty Analysis Subscriber Payment |
One Month Subscription : US$ 500 /per FX pair
Recurring Monthly Subscription : US$ 500 per month
| Contact us via the form below or email research@gulf-analytics.com |
| ._ |
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