Get right price on your Fx and Save Cost

Forex Hedging | 10 min Read
Best Hedging Strategy For Importers, import port

Most companies in India pay the wrong price on their Fx booking.

This is a very real problem. Whether it is a simple deal or a complicated deal- the story remains the same. Companies get charged more even without realizing it.

For a simple deal like spot, cash, tom conversion often the OTC prices are trended against the company. The various information platforms provide spot rate however mere spot information is not sufficient for negotiations since even the best of the screens provide information with a bit of delay. Cash-spot, tom-spot values are often not accurately known to companies. Forward premiums are also often trended whether for month ends or for broken periods.

Surprisingly, even many large companies also pay a wrong price for Simple Fx conversions. For medium sized companies the problem is more pronounced.

Many executives working in corporate finance are unwilling to believe that they are being charged a wrong price and that possibly is part of the problem. However once they improve the price for their company, they invariably feel better.

For complicated hedge deals like LTFX, Options and swaps , the gap between fair price and dealt price is much wider. Even the best of data dissemination provide incorrect bid offers and hence corporates do not know the accurate inter bank levels.

QuantArt has been able to improve pricing for 99% of it’s clients through appropriate negotiation strategies, knowledge building and information/ calculators. QuantArt hand holds the finance team to ensure they get the right price. Doing deals at the wrong price should not be acceptable to anyone.

Ensure that your company is not charged a wrong fx price for deal bookings.

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