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Foreign Exchange Risk Management With MTFX

Home / FX Risk

MTFX Can Identify and Manage Your Foreign Exchange Risks to Help Your Business Grow.

Every business venture comes with some level of risk. Identifying and managing an acceptable level of risk can mean the difference between a successful Fortune 500 company and a start-up that never leaves the ground. The important thing is to weigh the risks to your business against opportunities and outcomes.

In FX trading, business owners take risks on currency markets, creating an industry that trades in the neighborhood of $5.3 trillion per day. Some brokers let the sheer speed of the market and the feeling of instant gratification dictate how they trade, but savvy traders and business owners will understand the importance of FX risk management and risk minimization.

Understanding FX Risks

Strategic calculations and up-to-the-minute market analyses are necessary for proper risk assessment in FX trading. This requires access to the latest technology with 24/7 rate monitoring to keep you up to date on the most (and least) favorable rates in the markets you’re trading in.

With an eye on the market and an understanding of market trends and the psychology of trading, you can begin to recognize the importance of risk in FX trading. Of course, actually keeping up with it and making trades when it’s favorable for you is another matter.

If you’re managing your own risk for each of your trades, you can generally succeed by sticking with the 2% rule. Never risk more than 2% of your total capital on a single trade, and you will generally avoid major losses. Then, however, you have to determine what your risk factors are, in addition to how much risk exposure your business can sustain.

How MTFX Can Help

Essentially, you need to find and diagnose the shortcomings in your trading habits to further minimize risk and maximize opportunity. This is where MTFX can be of major assistance. Not only do we have the technology to help you stay on top of your currency markets, but we also have the expertise to evaluate your risk factors and trading habits against the needs and goals of your business.

With tools like rate alert notifications, forward contracts, market orders, and stop-loss orders, we can implement the right FX solutions for your business to minimize your risk exposure, manage acceptable risk levels, and maximize the value of all of your trades.

For more information on managing your FX solutions with MTFX, Contact us today to speak with an expert account executive.

Sources:

“Global foreign-exchange turnover,” The Economist, September 14, 2013;
http://www.economist.com/news/economic-and-financial-indicators/21586351-global-foreign-exchange-turnover.

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