For hedgers
A hedger is a business that buys protection against a currency move. It pays a premium upfront and is paid if the exchange rate moves past its strike before the protection ends.
Who hedges
Importers and distributorsSupplier invoices in dollars, revenue in local currency. They buy an Up cover.
ManufacturersImported materials and machinery priced in dollars. They buy an Up cover.
Exporters and producersSales paid in dollars, costs in local currency. They buy a Down cover.
Service exportersClient fees in dollars, salaries in local currency. They buy a Down cover.
Companies with dollar loansRepayments in dollars from local-currency income. They buy an Up cover.
Payment providersExposure between collecting funds and completing settlement.
Use cases
ImporterProtect a supplier invoiceFix the local cost of a dollar invoice due in 30 days.ExporterProtect a saleSet the least a dollar payment is worth when it arrives.BorrowerProtect a loan repaymentLimit the local cost of the next dollar repayment.Finance teamProtect a budgetCover a quarter's dollar spending, not one invoice.
Guides
Choose a marketFind the pair, direction and duration that match your exposure.Request a quoteAsk underwriters for terms no pool sells yet.Understand your termsStrike, limit, duration and what each means for the payout.Buy protectionReview the price and activate your contract.Track your contractsFollow every contract until it settles.Receive a payoutHow settlement works and how you claim.