BSE Campaign

Common Mistakes in Risk Management Click here for FREE Risk Assessment Not having a well-defined Risk management policy. Not having a robust Risk management system , using Excel. Trying to capture highest rate for Export & lowest rate for Imports. Not monitoring the unhedged Exports / Imports Thinking that Export & Import is a Natural…

BSE Campaign

MANAGING IMPORT RISK BY USING CURRENCY CALL SPREAD       -Rajat Prasad One of the biggest risk factors involved in operating an Import Business is that while the overseas purchase and local sale is in progress the value of Indian Rupee may change in comparison to the value of the U.S. dollar (assuming Import…

BSE Campaign

MANAGING EXPORT RISK USING CURRENCY PUT SPREAD One of the biggest risk factors involved in operating an Export business is that while the Local Purchase & Overseas Sale is in progress, the value of Indian Rupee may change in comparison to the value of  U.S. dollar (assuming Export is with USA). This means that the…

BSE Campaign

  BSE CURRENCY OPTIONS  Protecting Importer’s cost with BUY CALL option Date : 18 January 2021 Call options are a type of derivative contracts that give  holder the right, but not the obligation to purchase a specified amount of Currency at a predetermined price, known as the “strike price” of the option. If the Currency…

BSE Campaign

  Currency Options – An alternative to manage FX  risk PROTECTING EXPORT COST WITH  BUY PUT OPTION Date : 11 January 2021 Companies in business of export and import are exposed to currency risk. It is wise to protect the cost of transaction against currency fluctuations. Companies can mitigate currency fluctuation risk by Futures and…

BSE Campaign

CALCULATION OF COSTING RATE AND PROTECTING IT WITH BSE CURRENCY FUTURES ( IMPORTERS POINT OF VIEW) Date : 04 January 2021 Business in international markets is different from handling domestic business transactions at various levels. A company that intends to buy from a foreign supplier must ensure  that the transaction is viable, profitable and he…

BSE Campaign

(CALCULATION OF COSTING RATE AND PROTECTING IT WITH CURRENCY FUTURES EXPORTER’S POINT OF VIEW) Date : 28 December 2021 In the era of global market economy and fierce competition, importance of accurate costing of product is of core importance. Export pricing is most important tool for promoting sales and contesting in international competition. Exporter has…

BSE Campaign

  HOW CAN IMPORTER MANAGE CURRENCY RISK THROUGH BSE CURRENCY FUTURE CONTRACTS Date : Any individual or business that deals with foreign currency is exposed to forex risk. An importer or a foreign currency borrower has payables in foreign currency and he should  hedge his business against  weakening of  rupee. Future contracts may be categorized…

BSE Campaign

HOW EXPORTERS CAN MANAGE CURRENCY RISK THROUGH BSE CURRENCY FUTURE CONTRACT Date : 14 December 2020 One of the biggest risk factors involved in operating an Export business is that while the Purchase or Sales is in progress, the value of currency may change relative to the value of the U.S. dollar (assuming Export is…

Risk Management Essentials

  Risk Management Essentials for Exporters and Importers • Company must have a Risk Management Policy. • The policy should be reviewed on Regular Intervals. • Concentrate on the business rather than on making profit out of Currency Exposure. • Companies must decide minimum and maximum hedge ratio. • Unhedged portion should also be monitored…