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Foreign Exchange Risk Management

Today's foreign exchange markets are dynamic and therefore affected by a variety of global and national economic events. The fluctuating values in currency rates creates some risk regardless of whether you are buying or selling currency, or forward and future contracts. There will be times when you are exposed to a sudden devaluation of a particular currency.

Currency exchange risk management is one of our major concerns, in the good times and the bad. Our job is to protect your business and its financial assets against unstable foreign exchange rates.  Our goal is to make sure your transactions are efficient and secure.

Foreign Exchange Risk Management Issues

A few foreign exchange risk concerns can arise in your daily foreign exchange transactions, such as:

  • unanticipated currency exchange rate changes
  • confirmation of payments and receivables are delayed
  • lost payments
  • a discrepancy between the contract and the bank drafts received

The FX market can be a less anxious place for you to conduct business transactions. We provide the professional account management and right tools to help minimize the negative effects of strong currency fluctuations in foreign exchange rates, and discrepancies, and other disruptive effects. We will make your international payments a smooth and worry-free process.

 

CambridgeFX UK can obtain the lowest foreign exchange rates, whether in Euros, Pounds, Francs or US dollars. You'll receive friendly, efficient foreign exchange services including money transfers, account management information, and transaction reporting. Are you purchasing Spanish properties and need fast, secure transfer of your funds from Britain to Spain? Our UK and Spanish traders based in the UK are ready to help you with such transactions.

Foreign Exchange UK
Foreign Exchange

To manage successfully in foreign exchange markets, foreign exchange companies must understand the risk involved in foreign exchange and utilize effective risk management techniques for our clients.

A variety of techniques are used such as hedging which involves matching short and long positions on a currency, or using buying forward currency contracts.  Other risk management techniques are called market cover, factoring and options. Holding two different currencies into two separate accounts is a simple form of hedging that you can employ.

 

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