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FAQ's

Hedging sounds complicated — where do we start?
Start with an FX review: map currencies, cash flows, exposures and objectives so any strategy reflects your true risk profile. Hedging’s purpose is to protect profit from adverse FX moves. Example: a European importer paying USD sees costs rise when EURUSD falls. We calculate the EUR cost of those purchases, align it to profit targets, and design hedges to protect that cost.

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We’re naturally hedged but cash flows misalign — should we hedge?
Hedge only the residual mismatches that create P&L or cash‑flow risk; leave genuine natural hedges unhedged to avoid unnecessary cost. Use FX swaps to manage timing gaps — a swap locks one currency now and reverses it later, removing timing volatility. Example: two companies both need USD for imports and receive USD from US sales. Company A buys and later sells USD in the spot market and can suffer large FX losses from timing differences. Company B uses swaps to fix both legs and avoids that volatility.

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Isn’t hedging risky?
Hedging reduces directional FX risk; it can create opportunity cost if rates move favourably, so match hedges to your budget and risk appetite. Misconceptions arise when providers push revenue‑driven or ill‑fitted hedges. Appropriate hedging protects cash flows and P&L — unsuitable instruments, over‑hedging, or poor alignment with accounting are the real sources of harm.

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How do I set a budget rate?
Set a target using historic volatility, forward curves and your forecasted cash flows. Align the budget to required margins or cost targets and use a banded execution plan (layering, windows, or options) to manage attainment. Example: a buyer forecasting JPY exposure sets a budget so contracted purchases preserve target gross margin, then executes to that band across the year.

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How much will this cost?
Our aim is to save you money overall. Fees depend on scope and complexity; the initial FX review is free and the post‑review proposal will include a clear fee estimate and an ROI illustration. Many clients net savings even after fees.

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Can you work with our existing banks?
Yes. We maintain preferred relationships and only introduce additional vetted counterparties where they deliver clear, demonstrable value.

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How quickly can we onboard?
Typical onboarding ranges from rapid (days–weeks) for standard setups to longer for complex arrangements. We manage documentation, credit, connectivity and testing end‑to‑end to accelerate timelines.

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What instruments do you use?
We use spot, forwards, NDFs, swaps and options — selected to balance cost, liquidity, timing and your risk objectives.

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Who owns the decisions — you or us?
Flexible: advisory only, execution under your mandate, or fully outsourced stewardship (FX Angels) operating within agreed policy limits.

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How do you measure success?
KPIs include identifiable cost savings, reduced P&L volatility, improved liquidity efficiency and compliance with governance and reporting SLAs.

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How do you manage counterparty risk?
Via rigorous onboarding and vetting, diversification, bespoke credit terms and continuous monitoring of exposures and counterparty performance.

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Can you guarantee savings?
Markets are variable, so we don’t promise absolute guarantees. We deliver conservative, data‑driven estimates and focus on repeatable process improvements, transparency and measurable outcomes.

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