
Ask HK: How can small businesses reduce currency risk? - Florian499
I&#x27;m a small business and face cash flow uncertainties due to currency fluctuations. Does anyone have a similar problem and an idea how to mitigate this?
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sloaken
If I recall reading correctly, to protect against exchange rate fluctuations,
many organizations use the forex market. Forex being futures market in
different currencies. So if you are worried the markets will go one way, then
you place a transaction to cover that. If it never occurs you lose the
transaction cost, if it does then you get covered for it. It is a little
complex and you need to be sure to manage your level of risk.

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Florian499
Anyone knows which companies offer simple solutions that are easily accessible
for smaller companies?

