Centralizing FX Treasury Capabilities (Video) Centralizing FX Treasury Capabilities (Video): Discover how centralized FX risk management functions provide global firms with greater visibility across the enterprise. This video is a preview of FX Initiative’s FX Risk Management course as part of Learning Objective #1. To learn more, start your FX risk management training today, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples & events at FXCPE.com. Start FX Training October 8, 2019By FX Initiative FX Risk Management, General accounting, centralize, corporate, CPE, currency, derivatives, economics, education, finance, forex, fxcpe, fxinitiative, hedging, international, learning, multinational, operations, payments, personnel, policy, resources, strategy, trading, training, treasury, visibility 0 0 Comment
October 2019 Newsletter Explore our October newsletter and discover the latest blog posts and insights from FX Initiative. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training > View Newsletter October 1, 2019By FX Initiative Examples, General accounting, balancesheet, call, CPE, currency, derivatives, development, economics, education, examples, finance, forecasting, foreignexchange, forex, fundamental, fxcpe, fxinitiative, gain, hedging, incomestatement, insights, learning, loss, management, newsletter, options, policy, professional, put, risk, technical, training, treasury, updates, videos 0 0 Comment
Pricing FX Put & Call Options (Video) Pricing FX Put & Call Options (Video): Learn the 6 variables that are used to price foreign exchange (FX) options in the Garman-Kohlhagen option pricing model. This video is a preview of FX Initiative’s FX Spot & Derivatives course as part of Learning Objective #2. To learn more, start your FX risk management training today, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples & events at FXCPE.com. Start FX Training September 17, 2019By FX Initiative FX Spot & Derivatives, General accounting, base, call, corporate, currency, derivatives, example, expiry, finance, forex, fxcpe, fxinitiative, Garman-Kohlhagen, instrisic, interest, management, maturity, options, premium, price, put, risk, strike, terms, training, treasury, volatility 0 0 Comment
Professional Development Planning & Profitability Professional development in the workplace often refers to required employee training in areas such as workplace safety, corporate policies, and industry specific rules and regulations. While this training is commonplace in the corporate setting, it rarely provides value add to the employee or organization in terms of job performance and profitability. FX Initiative's approach to professional development focuses on practical employee training and delivering actionable insights. We start by identifying knowledge gaps using our Pre-Test Evaluation, then we close those knowledge gaps with our on-demand educational videos, and we reinforce our learning concepts using real-world examples. Professionals tasked with foreign exchange risk management often know their goals and objectives, but struggle with how to achieve them due to lack of training. Without practicing what you've learned and investing time and resources into education, it seems unrealistic to expect positive bottom line results and achievement of target plans. The organizations FX Initiative works with recognize that investing in quality training that directly relates to employee job responsibilities benefits both the employee and the bottom line. Not only are employees more knowledgeable and capable after completing our training, but they are able to apply their knowledge for the benefit of their customers and the firm. FX training is a win-win outcome. FX sales teams are able to have deeper conversations with clients, gain a better understanding of problems and available solutions, and secure long-term relationships that are mutually beneficial to both parties. Treasury professionals are able to significantly reduce FX gains and losses, preserve cash flows from FX transactions, and articulate their results more clearly and confidently to senior management. FX Initiative's Currency Risk Management Training provides a valuable turnkey plan for learning foreign exchange that helps FX sales teams collaborate more effectively with treasury professionals. FX service providers and global firms can take full advantage of our unique FX training opportunity by proactively investing in their employees and organizations. Professional development is no longer something to simply check off the list, it is now a priority for global companies and their employees to remain competitive and profitable. To learn more, start your FX risk management training today, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples & events at FXCPE.com. Start FX Training July 30, 2019By FX Initiative General Continuing Professional Education, CPE, Currency, Derivatives, Education, Forex, FXCPE, FXInitiative, Goals, Growth, Hedging, Improvement, Learning, Manangement, Objectives, Performance, Productivity, Professional Development, Progress, Risk, Training 0 0 Comment
Exploring FX Economic Risk (Video) Exploring FX Economic Risk (Video): Explore the concept of foreign exchange (FX) economic risk and recognize its macro impact on the financial statements and global business opportunities. This video is a preview of FX Initiative’s FX Risk Exposures course as part of Learning Objective #1. To learn more, start your FX risk management training today, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples & events at FXCPE.com. Start FX Training June 11, 2019By FX Initiative FX Risk Exposures, General accounting, business, CPE, currency, derivatives, economics, education, elections, finance, forex, fxcpe, fxinitiative, government, hedging, learning, losses, macro, management, policy, political, profits, regulatory, risk, training, treasury 0 0 Comment
May 2019 Newsletter EDUCATION | EXAMPLES | EVENTS May 2019 Newsletter Learn How To Manage FX Risk Featured Course The FX Market Overview course explores the concepts of economic globalization and international trade, examines the evolution and operations of the foreign exchange (FX) market, and demonstrates how supply and demand impact FX rates and forecasting. Read More » Featured Resource The FX Terms Glossary defines key terms related to FX risk management. This online dictionary is designed to clarify the FX conversation, and helps you develop a working vocabulary of important and frequently encountered concepts concerning foreign currency. Read More » Featured Webinar The FX Risk Management webinar focuses on the fundamentals of corporate FX risk management, explores how leading multinational firms prioritize and manage the 3 types of FX risks, and demonstrates best practices for assessing your company’s FX risk profile. Read More » support@fxinitiative.com | 312-566-7475 | www.fxcpe.com © FX Initiative, LLC | All rights reserved | Unsubscribe from list. May 7, 2019By FX Initiative General #strategy, accounting, bestpractices, CPE, currency, derivatives, education, finance, forex, fxcpe, fxinitiative, hedging, knowledge, learning, management, policy, practice, risk, sales, simulate, teams, treasury 0 0 Comment
FX Strategies for Foreign Subsidiaries Would you like to optimize FX strategies for foreign subsidiaries? FX Initiative’s Hedging Foreign Subsidiaries course outlines the fundamentals of hedging net income and net investment exposures in foreign subsidiaries, and reveals the cash flow and financial reporting implications of hedging FX translation risk with currency derivatives. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training > Download the PDF March 12, 2019By FX Initiative General, Hedging Foreign Subsidiaries bestpractices, consolidation, cpe, currency, derivatives, dividends, earnings, education, equity, foreign, forex, functional, fxcpe, fxinitiative, hedge, investment, learning, management, profits, repatriation, risk, strategy, subsidiary, TCJA, training, translation 0 0 Comment
Discover the Different Types of FX Derivatives Do you want to discover the different types of FX derivatives in detail? FX Initiative’s FX Spot & Derivatives course will help you distinguish the different type of FX derivatives firms employ to effectively hedge FX risk. This program provides a comparative analysis of FX derivatives with simulated examples to demonstrate the instruments your firm can use. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training > Download the PDF February 12, 2019By FX Initiative FX Spot & Derivatives, General accounting, bestpractices, collars, cpe, currency, derivatives, economics, education, forex, forwards, fxcpe, fxinitiative, hedging, learning, management, options, payoff, professional, profile, risk, training 0 0 Comment
Explore the Zero Sum Game of FX Gains & Losses Hedging foreign exchange risk can be viewed as a zero sum game, meaning that when one side of the hedge gains the other side loses. The degree by which those gains and losses do or do not perfectly offset depends on the derivative instrument, hedge coverage level, and strategy used. The FX hedge game isn't about winning or losing, it's about making the outcome more certain. Balance sheet hedging is the most common practice among multinational corporations, and the goal is often to reduce foreign exchange gains and losses on the income statement to zero. The most effective way to largely achieve this goal is to hedge using a forward contract, which has a symmetrical payoff profile relative to the spot exchange rate, and to hedge 100% of the underlying exposure. However, even under this perfect scenario, there will still be residual FX gains and losses reported in earnings. When companies hedge near 100% of their balance sheet exposures using forward contracts, controllers and treasurers often wonder why they are never able to achieve that zero sum outcome entirely. This is due to the forward point component of the forward rate on the derivative contract, and the fact that forward contracts are revalued based on forward rates compared to the underlying spot exposure, which is revalued based on spot exchange rates. As a result, there will almost always be a difference in the "mark-to-market" accounting of a forward contract hedge and an underlying spot exposure. The only time this would not be the case is if interest rates were exactly equal for the countries or regions associated with the two currencies in the pair, which is highly uncommon. This is a typical area of frustration global corporations struggle with, and it highlights that understanding the accounting for underlying exposures and derivatives can clarify why there is a residual impact in earnings. Furthermore, it helps set realistic expectations as to what can be achieved when trying to play the zero sum game of FX hedging. FX Initiative's Currency Risk Management Training covers balance sheet hedging in detail using Apple as an example to show how multinational corporations can hedge common exposures such as receivables and payables with forward contracts to mitigate foreign exchange gains and losses on the income statement. Our focus is on both the cash flow and financial reporting aspects of the hedge strategy, and we reinforce our teaching with visual displays of the economic and accounting ramifications. If you are interested in learning how to hedge FX balance sheet exposures, forecasted transactions, and net investments in foreign subsidiaries, start your training today and explore our real world examples of all three scenarios. Furthermore, you can use our FX Transaction Simulator and Foreign Subsidiary Consolidator to customize your own risk model using company specific variables that reflect your actual exposures. Our video based curriculum puts academic theory into practice, and can help you and your team deliver more effective bottom line results in a time efficient manner. Take the FX Initiative for your organization by subscribing here. Click here to subscribe > Cheers, The FX Initiative Team support@fxinitiative.com August 27, 2018By FX Initiative FX Transaction Simulator, Hedging FX Transactions Accounting, Apple, Balance Sheet, Best Practice, Continuing Professional Education, Controller, CPE, Credit, CUrrency, Derivatives, Earnings, Economics, Forward Contract, FX, Gains, Hedge, Income Statement, Losses, Management, Risk, Traning, Treasurer, Zero Sum Game, Foreign Exchange 0 0 Comment
You're invited to the FX Forward Contracts webinar! You're invited to the FX Forward Contracts webinar! Thursday, June 21st | 2PM Eastern | 1 CPE Credit Program Overview Join us for a live webinar and learn what forward contracts are and why they are the most used derivative. This 1-hour session covers 4 key learning objectives: Discover the concept of over-the-counter (OTC) foreign currency derivatives. Identify what forward contracts are and how forward points are calculated. Recognize the payoff profile, economics and accounting of forward contracts. Explore why forward contracts are the most used FX derivative by corporations. Who Should Attend New and seasoned finance, accounting, treasury, and related professionals (CPA, CIA, CRMA, CFE, etc.) interested in international business. Join Us June 14, 2018By FX Initiative FX Spot & Derivatives, Webinar Accounting, Continuing-Professional-Education, Corporate, CPE, Currency, Derivatives, Foreign-Exchange, Forex, Forward-Contacts, FX-Risk-Management, Hedging, Training, Webinar 0 0 Comment