The reaction from our partners and corporate clients to the launch of Hedgebook’s Exposure Tool has been hugely satisfying. The Exposure Tool combines foreign currency cashflow forecasts with fx hedging derivatives to provide a clear visualisation of the company’s hedging position. Moving seemlessly between time horizons, currency pairs and hypothetical exchange rate movements enables users to gain a deeper understanding of their position under both prevailing market rates and hypothetical scenarios.

Sharing the information between the customer and their bank/broker/advisor allows discussions to focus on the gnarly stuff without wasting time getting to the starting position. Strategies can be formulated, impacts on the hedging position analysed (including against risk control limits) prior to entering new transactions.

For users of path dependent options where the amount or hedged rate can change under different market conditions the Exposure Tool brings absolute clarity. Experience has told us that businesses entering FX derivatives (for all the right reasons) often have difficulty articulating the structures and the potential outcomes that the business is exposed to. The Exposure Tool distills the complexity of FX hedging to easy to understand outcomes.

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