Predictability, accurate forecasting and preventing unexpected currency losses are the main reasons your business will employ a hedging strategy.
If you make regular imports or pay suppliers in foreign currencies, shifts in the FX market could result in fluctuating costs. Working with your the Caxton strategic hedging desk, your business can manage exposure with a combination of forward contracts or FX Options.
Transfer your risk, forecast with ease and protect your profits.
Engcon have been manufacturing construction equipment in Sweden since 1990. When they began to grow, they faced a potential problem: to expand they needed to export, but if currency exchange rates varied, those international sales could lose them money. Caxton were able to help Krister Blomgren, CEO of Engcon, to expand his business successfully by limiting their exposure to changes in the market.
“Caxton limits our exposure to changes in the market. We’re able to sell internationally and actively manage our foreign exchange rate. Caxton came up with a derivatives plan that meant that we could guarantee our exchange rates, even though planning for Swedish Krona can be more difficult.”
A forward contract lets you lock in an exchange rate for a period of up to 18 months.
Lock in a rate for a date in the future but still benefit if the market moves in your favour
An instruction to let us act for you. We use our monitoring service to secure a target rate.
Outplay Entertainment is the largest independent mobile game developer in the UK, with over 100 million downloads globally. With continued year on year growth, international payments and FX requirements became critical to their business model. Caxton helped them achieve sharper rates of exchange, made international payments more efficient and provided the expert market insight and guidance they needed to ensure they can concentrate on growing their business.
‘Ever since meeting Caxton to discuss our requirements, we’ve held a very strong relationship with them. Not only do they provide us with great rates, which is key when transacting seven figure sums annually, but they provide astute market guidance to help us make informed decisions’, said Gillian Gray, CFO at Outplay Entertainment. ‘I don’t need to spend all my time watching the markets and can now focus on business growth.’
Whether you want to be actively managing risk or have us do it for you, our service is trusted by thousands of UK businesses. We’ll help you build your plan in 4 simple steps to optimise your cash flow and protect profits:
Have our team assess how well protected your business is against adverse FX market conditions, with a free currency risk consultation. After assessing your goals and current methods our expert team will offer clear and practical advice that could help you use the right tools to protect your company's bottom line. Evaluate this opportunity in a short phone call to the team on 020 7042 7649.
Speak to the FX strategy desk about managing your currency risk, today.