Risk management

At RationalFX, we always have our clients' best interests in mind, so we offer a range of risk management services that aim to ensure that your business is getting the best possible deal on its foreign currency exchange transfers and saving money by optimising your foreign exchange strategy based on your needs and requirements.

If your business has the requirement to regularly makes overseas money transfers, for example to pay for imports, suppliers or for any other reason, the currency exchange rate being offered could prevent you from getting the most return from your money.

You will be assigned a dedicated dealer who will be able to assess all of the risks which your company are exposed to. With information such as your annual FX volume, currencies you will be trading and the regularity of your payments, our dealers will help you devise a strategy with the benefits of live and historical market data in order to make money saving recommendations, which are bespoke for your circumstances.

To help protect your business from potential risks in the market choose from either a forward or limit order as opposed to making repeated spot transactions. A forward order will allow you to fix an exchange rate for up to two years in advance, reducing your exposure to market fluctuation and exchange rate changes. A limit order can assist you in saving money as it offers you the opportunity to react very quickly when the particular rate you are looking for, or hoping to avoid arises.

Case study:

A pharmaceutical company in the UK needs to make monthly payments to medical facilities in Germany and Switzerland. In January, the exchange rate does not look promising so we arrange a one off payment to be made so that month’s payment is received on time. By February, the exchange rate is much higher and therefore we recommend that you secure that exchange rate for a set period over the coming months as we predict it would have dropped again by March.

This way, you improve your average rate of exchange and protect yourself from the impact of currency fluctuations, potentially affecting your profits.