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Why strategy is more important than rates
A hedging strategy is not one-size-fits-all. It is better thought of as a tailored programme designed around your specific exposures, risk appetite, budget rate and commercial objectives. The right strategy protects your margins through volatile periods while giving you the flexibility to adapt as market conditions and business needs change.
Too many businesses treat hedging as a series of isolated transactions. The result is inconsistent cover, missed opportunities and no real visibility over performance against budget. We take a different approach.
Common approaches to hedging
Layered Hedging: Booking contracts in increments over time rather than all at once. This smooths the average rate achieved and reduces the risk of locking in a large amount at a single unfavourable level.
Rolling Hedging: Maintaining continuous forward cover on a rolling basis (e.g. always hedged 12 months out). As contracts mature and settle, new ones are booked to maintain the coverage horizon.
Selective Hedging: Hedging at specific target rates using market orders and tactical execution. More active than passive layering, and suited to businesses with a clear view on market direction and a defined budget rate.
What makes us different
SmartHedge PRO
SmartHedge PRO is our currency management platform that makes tracking exposures simpler than ever. Developed and tested to address pressing challenges growing companies face, SmartHedge PRO offers automated solutions that allow business to spend less time pouring over spreadsheets and more time making the decisions that matter.
How we work
Trading with us is simple
Follow our streamlined steps to navigate currency markets effortlessly.
Open an account
Opening an account with Smart Currency Business is simple.
Quick and easy
Complete the enquiry form below, or give us a call.
Guided process
Our team will be happy to guide you through the process.
Frequently Asked Questions
What are the most common currency hedging strategies for businesses?
The most common approaches are layered hedging (buying in increments), rolling hedging (maintaining continuous forward cover) and selective hedging (targeting specific rates). Each has different risk/return characteristics, and the right choice depends on your business model and risk appetite.
What is a layered hedging strategy?
A layered strategy involves booking multiple smaller contracts over time rather than hedging your full exposure at a single rate. This smooths out the average rate achieved and reduces concentration risk.
How do I choose the right hedging strategy for my business?
It depends on your budget rate, risk appetite, cashflow profile and available margin. Businesses with thin margins often prefer highly protective passive strategies, while those with more flexibility may use active or selective approaches. We’ll help you determine the right fit.
What is a budget rate and why is it important?
Your budget rate is the exchange rate your business needs to achieve to maintain planned margins. It’s the benchmark against which your hedging programme is measured and the starting point for every strategy we design.
Can my hedging strategy be adjusted if the market moves?
Absolutely. Hedging strategies should be dynamic, not static. We conduct regular reviews and adjust our recommendations based on market developments, changes to your exposure profile and performance against budget.
