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Take Control of Currency Risk

Successfully navigating unpredictable markets requires a smart approach to managing currency fluctuations. At Dinheiro, we equip your business with effective strategies to minimize exposure and capitalize on opportunities, ensuring you're always prepared for market shifts.

Market Evaluation

We work with you to identify the factors that create currency exposure. Our team assesses your operations, evaluates risk tolerance, and collaborates to define your top priorities. From there, we help you break down the inherent risks your business faces and outline ways to manage them effectively.

Strategy Development

Once we’ve analyzed your exposure, we craft a custom strategy tailored to your specific needs. Our approach minimizes currency risks while still allowing for potential gains. The plan we propose is clear, effective, and easy to implement, designed to keep your business on track in fluctuating markets.

Implementation

We provide access to a range of tools, including market orders, forward contracts, and blended strategies to handle volatility. Our team helps you execute these sophisticated tactics, shielding your business from short-term fluctuations while safeguarding against long-term shifts.

Forward Contract

Secure Your Exchange Rates with Dinheiro

A forward contract is a financial tool that allows your business to fix an exchange rate today for a currency transaction that will occur at a future date. This means you can conduct international transactions with the confidence that comes from knowing your exchange rate won't change, no matter how the market moves.

With Dinheiro, you can set up forward contracts to handle payments for international purchases, sales, or investments. These contracts can extend up to 24 months, providing long-term stability and helping your business navigate volatile currency markets with ease.

Why Opt for a Forward Contract?

By locking in an exchange rate now, you gain certainty over your future costs and revenues, making it easier to forecast cash flow and budget effectively. This strategy helps you maintain competitive pricing, manage expenses confidently, and focus on growing your business without the worry of exchange rate volatility. Dinheiro's forward contracts simplify international dealings and reduce financial risks.

The Cost of Not Hedging

If you decide against using hedging strategies like forward contracts, your business becomes susceptible to unfavorable currency movements. Exchange rates can shift unexpectedly, potentially increasing the cost of imports or decreasing the profitability of exports. Without a secured rate, these fluctuations can adversely affect your profit margins and overall financial health.

Navigating Currency Risk:

  • Safeguarding Against Negative Market Movements: Financial tools like forward contracts allow you to lock in an exchange rate for future transactions, providing protection if the market turns against you. Be mindful that significant currency fluctuations may require adjustments to your margin requirements to cover differences.

  • Potential Trade-Offs with Market Gains: While securing an exchange rate shields you from losses due to unfavorable shifts, it also means you won't benefit if the market moves in your favor. If your strategy involves capitalizing on positive short-term changes, alternative options like spot contracts might be more appropriate.

  • Aligning Risk Management with Business Goals: Assess your risk tolerance and ensure that your hedging strategies fit within your financial plans and budget. If there's uncertainty regarding your future currency needs, exploring other methods may offer greater flexibility.

  • Preparing for Upcoming International Transactions: Tools like forward contracts can help you manage anticipated foreign payments, such as settling invoices or making new purchases abroad. It's important to note that these instruments are intended to mitigate existing financial exposures rather than for speculative purposes.

  • Understanding Financial Commitments and Support: Entering into forward contracts typically involves an initial deposit, usually between 3-10% of the contract's value, depending on its length. Dinheiro is here to assist you in assessing your eligibility for credit support to manage these requirements effectively. Don't hesitate to contact us to discuss the options available to your business.

How to book forward contracts

  • You can find out more about what you need, from hedging strategies to currencies involved and length and rate of contracts by calling our team on 020 3098 5525 (local call rates and charges apply).

    We’ll clearly cover the below terms to ensure you’re comfortable with the conditions of the forward.

    These terms include:

    • The currencies involved

    • The rate of the contract

    • Tenure (length of the contract

    • Determining whether you require a fixed, flexible, or window forward

    • Explaining deposit/initial margin requirements, in case a credit facility is needed

    • Understanding if you’ll be using this (forward bought) currency for buying or selling goods or services, or for direct investment

  • You can easily book fixed forward contracts online and window and flexible forward contracts by calling 020 3098 5525 and speaking to one of our team (local call rates and charges apply).

    For fixed forwards, if you request a rate further than a spot contract (trade date, plus two days), you’ll receive a pop-up on your account informing you that you’re about to book a fixed forward contract with WorldFirst and that a deposit may be required.

    Once you click “Accept Rate & Book Transaction” you’ll enter a legal contract with us to buy or sell the currency you’ve selected.

    For added transparency, you’ll also receive detailed information on how we calculate margin requests. This information is important in case your rate significantly moves during the tenure of your contract, thus requiring a margin call.

    To get started, click Client Login

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