Frontyrion uses various hedging strategies to decrease or cover your FX risks with international payments. A frequently used hedge strategy is to draw up a forward contract.

What is a forward contract?

A forward contract is an agreement on a currency transaction in the future. In the forward contract the two parties agree on the date when the currency is exchanged at the current exchange rate or set a fixed exchange rate. Advantages are that:

1. The exchanged amount of the currency is already set. This gives both parties security.
2. With a forward contract, both parties are less influenced by fluctuating exchange rates.
3. With a reverse transaction, exchange rate differences can be settled on the agreed date.

Opening a multi-currency account at Frontyrion.

A different way to decrease FX risks, is by opening a multi-currency account. This account makes it possible to transfer and collect funds in 131 different currencies. For example, with a European customer you will pay in euros and with a British customer in pounds. You decide when to convert your currencies, making your transactions less sensitive to the changing exchange rates. Frontyrion offers you the sharpest currency exchange rates.