Forex Risk Calculator
Simulate currency fluctuations and hedging outcomes.
Managing Currency Risk
In international trade, profit margins are often thin. A slight swing in currency exchange rates between the invoice date and payment date can wipe out your entire profit.
Scenario: You are an exporter expecting €100,000. You budget at 1.10 USD/EUR ($110,000). If the rate drops to 1.05 USD/EUR by payment day, you only receive $105,000 losing $5,000 instantly.