Hedging
The concept is based on the fact that Import/Export activities, real-estate investments, and large saving accounts may suffer considerable losses in case the target currency, in which the investment is made or business revenue is expected to come from, begins a decline against the base currency of the operating entity, sometimes to the level of producing a net operational loss after the initial pricing plan and calculations have projected a satisfactory profit margin.
A rise in currencies from which companies import from or to which budgets are allocated is equally damaging. Specifically speaking, a rise in currency value of a country from which importing of goods or supplies is carried out is the single most damaging side effect to any import or contracting business.
At Tower One, we help to manage that risk and eliminate its effects using simplified methods which safeguard liquidity, budget, and business.This service only suitable for largest financial institutions demanding the product to manage risk of their investment portfolios on daily basis.
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