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How to eliminate accounting differences

Micro-hedge with Kantox’s Dynamic Hedging

Traditional currency hedging strategies means reaching a certain limit – be it a nominal amount or a rate level – before instructing a forward or spot transaction. However, this ‘one-size fits all’ approach is not optimal for many industries. E-commerce, travel,  digital advertising (Adtech), etc. all work in high volume, low margin environments with varying cash cycles.  

For most companies, waiting until expected revenue hits a certain limit means facing prolonged exposure to extremely volatile currency markets. Micro-hedging addresses this shortcoming by hedging each transaction – being a receivable, a payable, or anything similar – while they occur.  

Further, with Kantox’s Dynamic Hedging, treasury teams don’t have to worry about trying to manually monitor tenths, hundreds or even thousands of transactions a day. Instead, Kantox’s Dynamic Hedging streamlines  the micro-hedging workload, no matter how many transactions or how small the amount.

With Kantox’s Dynamic Hedging, companies can effortlessly implement micro-hedging in their finance department – faster than you think possible.

 

 

Ultimate hedging checklist

 

Is Dynamic Hedging the solution for your business?

Does your corporation need to handle numerous and frequent transactions in foreign currencies, possibly in several currency pairs, which are very complicated to hedge manually or using traditional FX providers like brokers or banks? Then this solution is particularly suited to your business, including companies in sectors such as:

  • Travel Industry
  • Digital Advertising (Adtech)
  • E-Commerce Businesses
  • Chemicals
  • Raw materials
  • And many more…

Plus many more with dynamic pricing models and accounting differences challenges.

Dynamic Hedging Business Cases