Hypothetical FX Hedging Simulations To become proficient in any skill, including currency risk management, practice makes perfect. To help companies practice, FX Initiative’s Foreign Exchange Transaction Simulator addresses a wide variety of FX scenarios by stress-testing hypothetical FX hedging strategies. This interactive risk modeling tool illustrates the economics and accounting of the most common hedging strategies for underlying foreign exchange exposures such as revenues, expenses, receivables, and payables. You can simply input your company specific and foreign exchange market variables, and then select your hedging strategy, which includes not hedging or hedging with a forward contract, vanilla option or zero cost collar. The resulting output is a highly detailed interactive FX risk analysis that charts the economic payoff of your selected hedging strategy, ranks the alternative hedging strategies, and reports the accounting journal entries and t-accounts with authoritative references to U.S. generally accepted accounting principles (GAAP). Behind the scenes, our robust pricing engine and database simplifies the risk analysis process for you so you can focus on the bottom line impact to your business. This versatile tool transforms 16 inputs into one information rich analysis in 3 easy steps. Step 1 is to select (1) the Underlying Exposure and input the related variables of (2) Functional Currency, (3) Foreign Currency, (4) Underlying Notional Amount, (5) Beginning Exchange Rate, (6) Currency Quoting Convention, (7) Start Date, (8) End Date and (9) the Day Count. Step 2 is to select a (10) Hedging Strategy and input the related variables of (11) Hedge Ratio %, (12) Domestic Interest Rate, (13) Foreign Interest Rate, (14) Implied Volatility, and (15) the Collar Range. Step 3 is to forecast (16) the ending exchange rate to see how positive and negative changes in exchange rates impact the cash flow and financial reporting of your selected hedging strategy. This FX risk management web application customizes strategies and can be modified efficiently and effectively. For example, if you want to change your underlying exposure or hedge strategy, it’s as simple as one-click. If you want to know which strategy yields the best outcome, all 4 strategies are ranked for you automatically. If you want to see how the default or elective accounting treatment differ, the journal entries and t-accounts are instantly presented side-by-side. This Foreign Exchange Transaction Simulator acts as your own personal quantitative analyst, and puts you in a positions to make a qualified foreign exchange risk management decisions. To begin practicing hypothetical FX hedging, 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 Risk Management Training > October 17, 2023By FX Initiative FX Transaction Simulator, General accounting, business, cpe, currency, development, education, events, examples, finance, fxcpe, fxinitiative, global, initiative, international, learning, management, payments, professional, risk, training, treasury 0 0 Comment
Currency Risk Management Learning Center FX Initiative offers access to our online Learning Center for paid training and free content to help your company conquer corporate currency risk management safely and remotely. Explore our FX articles, videos, courses, tools, and webinars. Our goal is to help sharpen your FX skills, contribute to your professional development, and add to your firm’s performance and profitability. Explore FX Learning Center > Whether you are new to foreign exchange or a seasoned professional, continue following FX Initiative for your FX risk management formula. 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 Risk Management Training > October 10, 2023By FX Initiative General accounting, business, CPE, currency, development, economics, education, events, examples, finance, forex, fxcpe, fxinitiative, global, hedging, initiative, international, management, payments, professional, risk, trading, training, treasury 0 0 Comment
October 2023 Newsletter Fall FX Training & Tips: Explore our October newsletter and discover the latest blog posts and insights from FX Initiative on currency risk management. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources. Scale the learning curve quickly and easily 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 3, 2023By FX Initiative General accounting, business, CPE, currency, derivatives, development, economics, education, events, examples, finance, forwards, fxcpe, fxinitiative, global, hedging, initiative, international, learning, management, options, payments, professional, risk, trading, training, treasury 0 0 Comment
FX Global Code Compliance Complying with the FX Global Code: The FX Global Code explains the set of global principles of good practice in the foreign exchange (FX) market, and was introduced by the Bank for International Settlements (BIS) Markets Committee in May 2017. To date, over 500 market participants have signed Statements of Commitment to the FX Global Code. The FX Global Code aligns with the foreign exchange (FX) risk management best practices FX Initiative teaches to FX market participants, including FX sales teams and treasury professionals. The goal of the FX Global Code is to promote fairness in FX trading, and FX Initiative encourages our audience to learn about and benefit from the code. Download the FX Global Code PDF Ready to learn more about FX risk management best practices? 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 19, 2023By FX Initiative General, Partnerships business, CPE, currency, derivatives, development, education, events, examples, forex, FXCPE, fxinitiative, global, hedging, initiative, international, learning, management, payments, professional, risk, training, treasury 0 0 Comment
Mastering FX Risk Management Webinar Program Overview FX Initiative cordially invites you to attend our webinar titled “Mastering Currency Risk Management”. Join us for a continuing professional education (CPE) program and earn CPE credit as we address the fundamental concepts of corporate foreign exchange (FX) risk management. This informational session will share best practices on how to identify, analyze, execute, and optimize a foreign exchange (FX) risk management program. Participants will learn how to assess a firm’s FX risk profile using a step-by-step analysis framework, the four approaches for managing FX risk, the impact FX risk has on the financial statements, and key terminology and takeaways for building a world class FX risk management program. Learning Objectives Discover how leading multinational corporations identify foreign exchange (FX) risk, including transaction, translation, and economic risk. Explore how to analyze FX risk management strategies, including balance sheet hedging, cash flow hedging, and net investment hedging. Identify key considerations when executing FX risk management plans, including the importance of strategy, policy and financial reporting. Recognize approaches to optimizing FX risk management plans by investing in personnel, resources, and operations to improve results. Who Should Attend? New and seasoned finance, accounting, treasury, and related professionals (CPA, CIA, CRMA, CFE, etc.) interested in international business. Register September 12, 2023By FX Initiative General, Webinar accounting, business, coporation, CPE, currency, development, economics, education, events, examples, finance, FXCPE, FXInitiative, global, hedging, initiative, international, learning, management, payments, professional, risk, trading, training, treasury 0 0 Comment
September 2023 Newsletter Explore our September newsletter and discover the latest blog posts and insights from FX Initiative on currency risk management. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources. Scale the learning curve quickly and easily 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 September 5, 2023By FX Initiative General, Webinar accounting, business, cashflows, CPE, currency, derivatives, development, economics, education, events, examples, exchange, foreign, forex, fxcpe, fxinitiative, global, hedging, initiative, international, learning, management, payments, professional, risk, trading, training, treasury, webinars 0 0 Comment
Centralizing FX Treasury Capabilities 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 August 15, 2023By FX Initiative FX Risk Management accounting, business, corproation, CPE, curency, development, education, events, example, finance, fxcpe, fxinitiative, global, hedging, initiative, management, mutlinational, payments, professional, risk, trading, training, treasury 0 0 Comment
August 2023 Newsletter August FX Analyses: Explore our 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 August 1, 2023By FX Initiative General accounting, business, corproation, CPE, currency, derivatives, development, economics, finance, fxcpe, fxinitiative, GAAP, global, hedging, IFRS, initiative, international, management, multinational, payments, professional, risk, trading, training, treasury 0 0 Comment
Preparing FX Risk Policies Preparing FX Risk Policies (Video): Explore how global firms such as Apple formally plan clear parameters and guidelines for managing foreign currency risk. This video is a preview of FX Initiative’s FX Risk Management 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 July 25, 2023By FX Initiative FX Risk Management, FX Risk Policy Drafter accounting, business, compliance, controls, CPE, currency, derivatives, development, duties, economics, education, events, examples, exchange, finance, foreign, forex, fxcpe, fxinitiative, global, guidelines, hedging, initiative, internal, international, learning, limits, management, operations, parameters, payments, policy, professional, regulations, risk, segregation, SOX, threshholds, trading, training, treasury 0 0 Comment
Pricing FX Put & Call Options 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 July 18, 2023By FX Initiative FX Spot & Derivatives, FX Transaction Simulator accounting, business, cashflows, collars, community, CPE, currency, derivatives, development, economics, education, events, examples, finance, forwards, fxcpe, fxinitiative, global, hedging, initiative, international, learning, management, options, payments, professional, risk, training, treasury, webinars 0 0 Comment