FX risk management & hedging solutions
Managing currency exposure is not just about reacting to market movements. It is about building a structured approach that supports planning, protects margins and enables more confident decision-making.
The hidden value of a smarter FX risk strategy
Protect profits and margins
Lock in exchange rates on future transactions to reduce the impact of currency movements on your margins
Minimise profit and loss volatility
Reduce exposure to market fluctuations, helping stabilise reported earnings and improve financial visibility
Reduce cash flow variability
More predictable cash flows by managing how exchange rate movements affect incoming and outgoing payments
Choose an FX hedging approach that is right for your business
Work with the team at Lumon to create a structured hedging approach for your business, managing currency risk over time by securing exchange rates for future transactions.
Rolling hedge: Aligns hedging activity with recurring cash flow cycles. Maintains consistent protection over time. Reduces the risk of securing all future currency requirements at once.
Layered hedge: Spreads transactions across different exchange rates. Can help create a more balanced average rate. Allows hedging levels to be adjusted as forecasts change.
Boundary hedge: Establishes clear exchange rate boundaries. Provides protection within a defined range. Supports more disciplined decision-making during market volatility.
Hedging programmes are designed for commercial risk management purposes and are not suitable for speculative trading. All execution is subject to market conditions, liquidity and applicable terms at the time of trade.
Leverage orders for speed, certainty and control
Market orders: Reduce the need for constant monitoring and help ensure you don’t miss opportunities or leave yourself exposed during volatility.
Limit order: Executes at a target exchange rate, allowing you to secure more favourable pricing without constant market monitoring. The transaction is automatically triggered once the desired level is reached.
Stop-loss order: Protects against adverse market movements by defining a worst-case rate. This helps limit downside risk and introduces clear, predefined risk controls.
One-cancels-the-other (OCO): Combines opportunity and protection by setting both a target rate and a downside threshold. When one order is triggered, the other is automatically cancelled, balancing risk and potential upside.
Trailing stop-loss: Protects gains as the market moves in your favour by automatically adjusting the stop level. This helps lock in improved rates while reducing the need for manual intervention.
Orders are triggered based on Lumon’s prices, which may differ from interbank or external reference rates and may include spreads or adjustments. As a result, you may not know exactly when an order will be triggered, and execution may occur at a different level than expected. This is an execution‑only service.
In FX, reaction is risk & planning is power
FX risk management support built around you
We take the time to understand your business, cash flow cycles and risk appetite, allowing us to shape hedging solutions that align with your specific objectives and operational needs.
Dedicated account manager
Insight-driven decisions
Timely market insights and expert analysis, empowering you to make data-backed decisions.
If you are unsure about the suitability of products, you should seek independent advice.
Lumon conducts all trades on an execution-only basis.
Volatility isn’t random.
Be ready with the right strategy.
