When it comes to managing risk in FX - hope is not a strategy
Let Lumon's experts help you create an FX strategy that reduces the risk of doing business overseas.
Before we put pen to paper or carry out a single trade, we work with you to understand what your business needs are, so we can develop the right strategy based on your appetite for risk.
We can do this either online or through an Account Manager with a team of risk management experts showing you the way.
Executing a spot contract allows you to convert currency based on the current exchange rate and make a payment. Exchange rates are constantly changing, and businesses could capitalise by executing a spot contract when there is a favourable market move.
If you’re making overseas payments, a Forward Contract lets you fix a price based on the current market rate for buying or selling currencies on a specified date in the future. Forward Contracts are typically used by businesses that have future payments or receipts in foreign currencies, because it protects both your budget and profit margins.
A Market Order instructs us that you need a specific exchange rate in the future. As soon as that rate is available, we’ll secure it for the amount you want to exchange. There are two different types of Market Orders:
Limit Orders, which target a specific exchange rate above the current level, versus Stop Loss Orders which specify the minimum exchange rate you’re prepared to trade at.