Business Strategy

In order for me to provide a bespoke service to your business, the first aspect I need to complete is an audit/review of your foreign exchange exposures, risk profile and business strategy. So often, a business plan is written when the company is being set up and then filed.

A company that wishes to be dynamic and successful needs to review and refresh its strategy on a regular basis, to ensure that it remains both competitive and attractive to its’ customers.

A simple question to ask yourself is “What is my attitude to risk?” The old saying “If you fail to plan, you plan to fail” comes to mind here, so how would you answer that simple question?
  1. I don’t like risk and try to mitigate it

  2. I don’t mind a bit of “speculation”

  3. I haven’t given it much thought

Once I have determined your attitude towards, or indeed appetite for risk, I can then set about creating a bespoke treasury policy for YOU.

Trading Strategies

Spot F.X. Contracts

The most common and simple foreign exchange transaction, which involves the purchase of one currency against the sale of another at an agreed rate. “Spot value” transactions traditionally settle within two working days.

Forward Foreign Exchange Contracts

A forward foreign exchange (F.X.) transaction involves the purchase of one currency against the sale of another for delivery on an agreed date in the future. It is similar to a spot F.X. deal, only for settlement at a later date, for example 7 days, one month, one year or a specific date.

Stop Loss Order

Enables a business to set a minimum rate at which the desired currencies are exchanged. Stop loss orders are used by businesses to lock in a “worst case” exchange rate, whilst still benefiting from any favourable currency movement. Stop orders can be monitored closely and amended as the market moves.

Limit Order

Enables a business to set a target exchange rate at which point, if reached, the currency transaction will take place.

Combined Orders

In order to effectively manage currency exposure, a stop order is often combined with a limit order to produce a range with an upper and lower currency level. This allows a company to make its currency transactions more predictable, as the exchange rate is guaranteed to be within these parameters.