Dynamic Hedging
The flexible micro-hedging solution that fully automates your FX risk management
Book a demoCorporate FX challenges
Many of the biggest FX challenges can be solved by automation, yet many companies still rely on manual processes. For some, the difference between profit, loss, and even bankruptcy, can come down to how well their foreign currency exposure is managed.
When it comes to currency management, most businesses experience similar pain points:
· FX volatility, causing a negative impact on the business
· Lack of visibility over FX exposure and unreliable forecasting
· Flawed manual processes to identify and capture FX exposure
· Inefficient treasury or financial risk management systems
· Immature or informal hedging practices
· Inability to analyse exposures and measure hedging results
We understand that a ‘one-size fits all’ approach doesn’t work. With that in mind, Kantox has created a solution that is adaptable to any volume of transactions, or any cash cycle length.
Micro-hedge your foreign currency transactions
Dynamic Hedging is the fully automated solution that eliminates FX risk and makes it easier to buy and sell in local currencies. With profit margins safeguarded, your business is more competitive and primed to increase market share.
Companies with manual hedging processes are more vulnerable to FX risk. Micro-hedging addresses this shortcoming by hedging each transaction (e.g. a receivable or payable), as it occurs.
Using straight-through processing (STP) to speed up processing time, Dynamic Hedging streamlines the workload, no matter how many transactions are being processed, or how small the amount. Currently, larger Kantox clients hedge more than 200,000 micro-transactions a year while others manage their risk in 115 currency pairs.
Jasmin Taylor
Managing Director
JT Touristik
“For a travel firm operating on the global market, currency fluctuation makes daily planning more complicated. With Kantox's Dynamic Hedging product, we are able to fully monitor the risk related to exchange rate fluctuations and to execute hedging operations automatically. This way, we can optimise cross- border transactions with minimum effort.”
Benefits of Dynamic Hedging
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Take full control of your FX exposure
- Capture FX exposure data in real-time
- Hedge risk safely and efficiently in all your currency pairs
- Monitor currency volatility 24/6
- Hedge micro-transactions based on your company needs
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Automate processes to boost efficiency
- Standardise your FX management procedures
- Automate micro-trade executions according to market movements
- Save time and reduce human error by eliminating manual processes
- Liberate your finance team from low-value administrative tasks
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Secure margins and protect your bottom line
- Effortlessly add new currency pairs when expanding into new international markets
- Retain and drive profits with safeguarded margins
- Minimise FX gains and losses
- Reduce P&L volatility with our Hedge Accounting solution
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Streamline reporting
- Use built-in analytics to streamline reporting for your CEO and the board
- Oversee your FX exposure with our data-rich analytics dashboard
- Gain a better visual representation of when settlements will occur to improve cash management
Using Dynamic Hedging, some clients hedge over 200,000 micro-transactions a year in 115 different currency pairs.
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