Saturday, October 8, 2011

Forex Hedging Tools

Hedging Tools

OANDA’s FXConsulting provides tools and support documents to help you understand and define your forex hedging needs.

Currency Risk Assessment Tool
Calculate the risk you’re taking on your foreign currency exposure amounts in the event that future forex rates change unfavorably. Compare this potential for loss to the cost of a carry spot forex hedge.

Cost Comparison (Spot vs. Forwards) Tool
Compare the cost difference or rate difference between a forex forward contract and a carry spot forex hedge. If you were quoted a forward contract rate, use this tool to get an estimated cost breakdown.

Hedging Calculator
Determine the online forex broker transaction(s) required to complete a carry-spot forex hedge for foreign currency balance sheet exposures accumulated over the current reporting period.

GAAP Accounting (PDF)
Learn some of the key aspects to be considered for GAAP forex hedge accounting treatment.

Sample Board Policies (PDF)
Access guidelines and samples for implementing a hedging policy for your company.

Forex hedging tools click here to access.

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