Our service goes beyond what retail banks offer. We give you access to market tools such as hedging via forward purchasing and working limit and stop orders in the market.
These tools can be very useful for savvy international businesses and overseas investors.
Here’s an example.
If you lock in a forward rate for three months hence at 1.15 selling €3mln against buying sterling, that would yield £2,608,695.65 on expiry (on the trade’s value date in three months time).
Alternatively if you don’t hedge the rate and the market moves to 1.25 then the €3mln would yield only £2,400,000.00. That’s a difference of £208,695.65.
Forward hedging of future currency exposure is vital for businesses who need to accurately forecast their future financial flows.
By working orders in the market you can also guard yourself and your business against currency fluctuations and better the rates that the market is offering at any one time.
Retail banks tend not to offer these services and yet they can save very significant amounts of money.
If you are interested in learning more please contact us for a more thorough explanation.