Obtain personalized advice and guidance in investment hedging strategies through foreign exchange and digital currencies. We base our consulting recommendations on sound US & Canadian market analysis.
Hedge with market orders, placed either on an overnight basis or as “good-til-cancelled,” so you can execute your deal to the optimal moment, when our market-monitoring traders process the order at the locked rate.
Purchase or sell foreign currency at a specified rate at a future date with forward contracts. Adjust or mitigate your overnight position with swaps – agreements to exchange on a specified date, usually within a week.
Our expert traders and award-winning systems can stay on top of US and Canadian markets for you – monitoring conditions across all active sessions, on behalf of customers. With this real-time intelligence and analysis, our trading desk is continuously prepared to provide customers with the best advice.
OUR 5-STEP PROCESS
We work with you to build a hedging strategy that best fits your market position. This is a dynamic, fluid process in which your account manager provides regular market updates and product information so that you can consistently protect your profit margins, while remaining flexible and maintaining the ability to participate in favorable market movements.
Our expert traders and award-winning systems can stay on top of markets for you – monitoring conditions across all active sessions so you can execute your deal to the optimal moment. All CanAm market orders can be placed either on an overnight basis or as “good-til-cancelled,” which means that the order will remain in force until it is either executed or cancelled by you.
A target order allows you to capitalize on favorable market movements.
You specify the amount of currency that you wish to exchange and a rate that is better than prevailing levels.
If the market moves to your desired point, a spot, forward, or option trade is automatically executed, locking in your gains.
A stop order allows you to protect against unfavorable market movements.
You specify the amount of currency that you wish to exchange and the worst-case rate that you are willing to accept.
If the market moves to this risk threshold, a spot, forward, or option trade is automatically executed, ensuring that you are not exposed to further loss.
A trailing stop order is where you specify the amount of currency you wish to exchange and the worst-case percentage change you are willing to accept.
If the market moves by more than this amount, a spot, forward, or option trade is automatically executed, ensuring you are not exposed to further loss.
If the market moves in your favor, the trailing stop moves with it, harnessing gains.
You can place a target order and stop order simultaneously, by specifying that if one order is filled, the other must be automatically canceled.
This eliminates the possibility of double-booking, allowing you to capitalize on favorable moves while protecting against loss.
A target order allows you to capitalize on favorable market movements. You specify the amount of currency that you wish to exchange and a rate that is better than prevailing levels. If the market moves to your desired point, a spot, forward, or option trade is automatically executed, locking in your gains.
A stop order allows you to protect against unfavorable market movements. You specify the amount of currency that you wish to exchange and the worst-case rate that you are willing to accept. If the market moves to this risk threshold, a spot, forward, or option trade is automatically executed, ensuring that you are not exposed to further loss.
A trailing stop order is where you specify the amount of currency you wish to exchange and the worst-case percentage change you are willing to accept. If the market moves by more than this amount, a spot, forward, or option trade is automatically executed, ensuring you are not exposed to further loss. If the market moves in your favor, the trailing stop moves with it, harnessing gains.
You can place a target order and stop order simultaneously, by specifying that if one order is filled, the other must be automatically canceled. This eliminates the possibility of double-booking, allowing you to capitalize on favorable moves while protecting against loss.
A target order allows you to capitalize on favorable market movements.
You specify the amount of currency that you wish to exchange and a rate that is better than prevailing levels.
If the market moves to your desired point, a spot, forward, or option trade is automatically executed, locking in your gains.
A stop order allows you to protect against unfavorable market movements.
You specify the amount of currency that you wish to exchange and the worst-case rate that you are willing to accept.
If the market moves to this risk threshold, a spot, forward, or option trade is automatically executed, ensuring that you are not exposed to further loss.
A trailing stop order is where you specify the amount of currency you wish to exchange and the worst-case percentage change you are willing to accept.
If the market moves by more than this amount, a spot, forward, or option trade is automatically executed, ensuring you are not exposed to further loss.
If the market moves in your favor, the trailing stop moves with it, harnessing gains.
You can place a target order and stop order simultaneously, by specifying that if one order is filled, the other must be automatically canceled.
This eliminates the possibility of double-booking, allowing you to capitalize on favorable moves while protecting against loss.
The most common hedging tool, forward contracts, fix a defined future date at which to buy or sell a stated amount of currency at an agreed rate. All forwards can be booked through our leading-edge trading platform, CanAm Online.
This standard forward is used for buying or selling currencies that are date-sensitive. The transaction is completed for the total amount of the contract on a specified date.
You also have the option of an “open” forward, which allows the flexibility of an open time period in which to settle. Open forwards also allow you to draw down against the original amount contracted.
Foreign exchange swaps are contracts wherein one currency is sold against another at inception, with a commitment to re-exchange the principal amount at the maturity of the deal in order to deploy cash resources as efficiently as possible. These swaps are structured as spot trades combined with offsetting future-dated forward contracts, so that the net foreign exchange exposure is removed and funds are positioned where needed.
A well-diversified portfolio for business risk includes hedging beyond cash management, options, forwards and other financial instruments.
Businesses should hedge even further with bullion and precious metals, such as bars and coins.
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