This is primarily about capital preservation and advising accordingly to the client’s needs.
Locking in your profits by mitigating the threat of exchange rate movements is fundamentally important for any business which trades across borders.
We know that there are varying degrees of understanding of foreign exchange markets amongst our clients. This takes time to understand their needs and tailor the appropriate service. It is essential for businesses to develop clear risk management strategies. This enables clients to minimise their exposure, lock in profits, reduce earnings fluctuations and even explore opportunities for enhancing their financial position. But, keeping things simple where we can.
Risk Management requires a comprehensive knowledge of the business. Forex services are more than an exchange rate. With the right tools to manage client affairs, this will encourage the business to maximise their position, by trading when the market suits them the most. Much of the Risk Management strategies relate to 'hedging'. This is a tool for reducing the risk of adverse price movements.