Our Dealers work in consultation with our clients to implement and maintain hedging strategies that are bespoke to their objectives and commercial environment, designed to reduce the impact that currency volatility can have on their bottom line.
Whilst constructing a bespoke hedging strategy requires high levels of analysis and expertise, the principles of how they work are simple – providing a level of formality and governance around:
Establishing and maintaining the correct balance for these parameters will ensure a business is never over or underhedged for their forecasted currency requirements, therefore protecting their cash flow and profit margin, whilst helping them remain competitive.
As part of a hedging strategy, clients will have a number of ‘hedging windows’ within which they will need to decide when to buy currency. The technical and fundamental analysis we provide helps our clients achieve a competitive hedge rate within this time frame.
We offer a broad range of Option products through our fully regulated subsidiary, Global Reach Markets, which can be used to form part of a blended hedging strategy. These products often play an important role in a foreign exchange hedging programme and compliment Spot Transactions and Forward Contracts as part of a diversified strategy. Option products can carry a higher level of risk and might not be suitable for all businesses.
For more information about the wide range of products we can offer, please call +44(0)20 3465 8200 to speak to a member of our qualified Dealing team.