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It is only at FOREX market in the period of global worldwide financial crisis possible to hedge your business risks which were induced by the considerable fluctuation of the exchange at the currency market. Hedging Fund is one of few companies offering to the Clients of service of consultation on hedging and realisation of the program, directed on hedging of a base asset.

Why Forex market is the only way to insure your capital in the macroeconomic crisis period? Companies which deal with foreign-trade operations all over the world (exporters and importers), are active participants at the international currency Forex market. Exporters have a constant interest in selling foreign currency and importers have an interest in purchase of exchange. Currency exchange is permanently changing especially in the period of macroeconomic crisis. As a result the real price of the buying or selling commodity can considerably change, and a contract which seemed to be profitable can become detrimental in the end. There are analytical departments in big companies which deal with export and import operations. At the moment high volatility of the financial market is observed and it is the reason of impossibility to insure the capital especially for a long period of time. That is why capital investment to the Forex currency market is the only way of hedging.

What possibilities the insurance of losses invested in Forex market gives: Your funds as well as future profit or expenses in foreign currency are exposed to currency risk. Calculation in many companies is usually made in one currency (for instance, Dollar, USA), therefore as a result of revaluation profit and expense item in foreign currencies there can be profits or expenses when the currency exchange changes. The currency risk hedging is funds defense from the adverse prize development, which contains the fixation of the actual currency prize by means of deal conclusion. Hedging leads to the fact that the risk of the adverse prize developing disappear for the company. This fact gives the opportunity to plan the future business and see the finance result, which will not be distorted by the currency fluctuation. It also gives the opportunity to set the prizes, calculate the profit, salaries, etc.

Hedging of the currency risk with the help of deals without flow of funds (using the leverage) gives the additional opportunities:

* allows not to retrieve considerable funds from the turnover of capital;
* allows to sell the currency, which will be made in future

It is assigned two hedging types - Buyer hedging and Seller hedging. Buyer hedging is used for decreasing the risk connected with the possible increase of the goods price. Seller hedging is used in the opposite situation - for limitation of the risk connected with the possible decrease of the goods price. The common hedging principle under foreign trade operations lies in opening currency position at the trading account as a future position for funds converting. Importer needs to buy foreign currency that is why he opens a position buying on a trading account in advance and when a moment of a currency purchase in his bank comes he closes the position.

Exporter needs to sell foreign currency that is why he opens a position selling the currency on a trading account in advance and when a moment of a currency purchase in his bank comes he closes this position




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