Kim Spence-Jones on Nostr: nprofile1q…s60lz nprofile1q…3xv4c For those who don’t know, currency hedging is ...
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For those who don’t know, currency hedging is a service which (in its useful form) allows companies with a future liability in a foreign currency (for example to buy electronic components) to buy forward enough currency to meet their obligations. That fixes into their own currency the price they will have to pay, allowing them to plan their profit margin, transferring any risk that exchange rates will move against them. Or alternatively, to fix incoming payments, too.
For those who don’t know, currency hedging is a service which (in its useful form) allows companies with a future liability in a foreign currency (for example to buy electronic components) to buy forward enough currency to meet their obligations. That fixes into their own currency the price they will have to pay, allowing them to plan their profit margin, transferring any risk that exchange rates will move against them. Or alternatively, to fix incoming payments, too.