Fyorin’s FX hedging tool helps you protect your margins by locking in foreign exchange rates for payments- either on the same day or up to 360 days in advance. Here’s a simple guide to setting up and managing your hedged payments.
Note: Before you can use Hedging you need to Activate the Terms and Conditions. In order to Accept T&Cs follow these steps:
In Payments Menu head to 'Payments Config'
Click on 'Activate Hedging' in the top right corner.
Select the Account you want to activate hedging for.
Step 1: Select the Contact
Go to Contacts in the Main Menu.
Find and select the contact you want to send money to.
Selecting the contact automatically sets the recipient currency based on their details.
Step 2: Initiate a Payment
On to the chosen contact, click the Payment button.
You’ll be taken to the payment screen.
Step 3: Fill Out Payment Details
Select the account and currency you want to send money from.
Enter other required details such as:
Relationship with the recipient
Payment reason
Reference information
Step 4: Schedule Your Payment and Hedge
When scheduling your payment, you have two options:
Today’s Date: Lock in the FX rate for 24 hours (Note: normal payments are subject to FX fluctuations and rates can change even every 5 minutes).
Future Date: Lock in the FX rate for up to 360 days in advance.
Choose the date that fits your payment needs.
Step 5: Review Payment
Click Review Payment.
You’ll see a breakdown of the costs comparing a spot trade (no hedging) with a hedged payment, including any associated fees.
Confirm all details are correct.
Step 6: Submit for Approval
Submit the payment for approval.
The payment will now appear in the Payments tab, awaiting approval.
Step 7: Approve, Reject, or Edit the Payment
In the Payments tab, approvers can approve or reject the payment and see the details of the trade by clicking on the Hedging button next to the payment.
If you need to amend the payment before approval:
Click the Hedging button next to the payment.
Click Edit.
Adjust the amount or other details as needed.
Any edits will require approval again before processing.
Additional Tips
Remember, once approved, payments will be executed based on your locked FX rate.
Keep an eye on your payment schedule to optimise your FX exposure and protect your margins.
If you have questions or need further help, contact our support team.
The video below explains how to use FX hedging in Fyorin and its benefits step-by-step: