020 7898 0500
Carl Hasty, Director, Smart Currency Business
De-risking your international growth:
- It is important for UK businesses to trade overseas, not just to grow their businesses but to stay competitive.
- Businesses need to de-risk their international growth.
- One particular risk is currency exchange. Trading internationally can be challenging depending on market volatility.
- Businesses run the risk of unfavourable currency costs, and Financial Directors do not always necessarily understand how to hedge to mitigate this risk. This results in money lost on currency conversions.
Tips for a currency-buying strategy when entering a new market:
- Know your budget rate and how to fix margins. This helps to inform how you price your goods and services.
- Understand how currency exchange rates can affect your business.
- Purchase currency at the right time, at the right price.
- Ensure that you’re up to date with the market – a currency provider can monitor the market for you.
- When building your currency strategy, be fully aware of the products that are available to you.
- Buy at the right time with market orders (limit orders and stop losses), or secure a rate with a forward contract.
Understand currency fluctuations:
It is crucial to understand what is happening in the market. Can your margin sustain such movements, or do you need to hedge?
Keep up to date:
- Access your own dedicated trader to understand how the market is performing. Don’t call them on a deal-by-deal basis.
- Keep up to date with regular currency forecasts.
Implement the best-fit strategy:
- Products and strategies: Spot Contract; Forward Contract; Market Orders. Find out which works best for your business.
- Secure same-day payments where possible.
- Opt for a currency health check to review your currency requirements.
- Keep in touch with a dedicated account manager.
To read overviews of Simon Carter’s and Howard Jackson’s presentations, please click on the links.
