FX hedging
Fluctuations of foreign exchange rates in the FX markets generate an FX rate risk. The risk is reflected as changes in the rates used in currency trades and in the value of loans and assets, for example. There are many ways to hedge against FX rate risk.
Products and services
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FX rate protection is highly suitable for companies engaging in international trade for hedging future currency payments and receivables. |
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An FX forward fixes the rate used in a currency trade taking place on a future date. |
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A bought option carries entitlement to exchange currency at a predetermined rate. |
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An FX swap can be used, for example, to reschedule the expiration date of an FX hedge. |
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The contract is suitable, for example, for changing the currency of a loan. |
