Enormous, unprecedented currency volatility has become the order of the day
New York (PRWEB) March 2, 2009
OANDA Corporation has introduced FXConsulting for Corporations, a professional service that will help large and small companies understand their foreign currency risk, use online tools to preview strategies for managing that risk, and calculate the cost before they commit. FXConsulting tailors practical, understandable solutions that are easy to implement--at the lowest possible cost.
OANDA, widely recognized as an innovator of efficient online currency services, has seen a dramatic rise in the number of companies that use its FXTrade platform to hedge their foreign-currency exposure. With the creation of FXConsulting for Corporations, OANDA has developed a Best Forex Practices framework to help small as well as large companies choose and implement a hedging strategy that precisely fits their individual needs.
"OANDA has proven itself as a reliable provider of the most important information and services for managing and trading currencies," said Michael Stumm, CEO of OANDA. "And our renowned tight exchange spreads speak to our obsession with efficiency and low cost. FXConsulting builds on OANDA's expertise to deliver two fundamental values: the most appropriate hedging strategy for a given company and a given situation, and the means to implement that strategy in the most cost-effective way."
In times of high volatility, such as we've seen over the last year, the right hedging strategy can eliminate currency risk altogether. But, to do so, CFOs and Controllers need to have a confident grasp of the strategies available to them, the relative costs, and which strategies represent the best fit for a given balance sheet over a given period of time.
"Enormous, unprecedented currency volatility has become the order of the day," added Murray Thomas, head of FXConsulting at OANDA. "Within a matter of weeks, we have seen the Australian Dollar drop 45% against the Japanese Yen, and the Canadian Dollar drop as much as 30% versus the U.S. Dollar. Such extreme movements can far outweigh the underlying economics of any cross-border business deal, quickly turning a potential profit into a staggering loss."
FX Consulting and the Website that accompanies it work to simplify the complex world of currency hedging. The online tools and calculators on the Website make it easy for CFOs, VPs of Finance, Controllers and Risk Managers to understand hedging--its real risks, how much it will cost, and the many flexible alternatives for managing exposure. To see how it works, please visit Hedging Tools.
"Our new service takes the guesswork out of choosing the best strategy for a company at any given moment," Murray added.
To learn more about FXConsulting for Corporations, call Murray Thomas at +1 212 618 1435 today.
OANDA started in 1995 as the first online provider of comprehensive currency-exchange information. Since then the "OANDA Rates"® has become the touchstone for corporations, tax authorities, auditing firms and even central banks. Today more than 85,000 organizations worldwide--including many Fortune 500 companies--rely on OANDA, making OANDA Rates available internally and on their Web sites through our ASP services.
In 2001 OANDA launched FXTrade, one of the first fully automated online currency-trading platforms. FXTrade was the first platform to offer immediate execution, support trades and accounts of any size, enable true 24/7 trading, and the first to offer second-by-second interest--eliminating the rollover swap.
Since 2001 we have steadily engineered enhancements to FXTrade to make currency transactions more efficient, more transparent, and more useful to a broader range of currency investors and traders. In 2007 we introduced FXManager, an allocation- and investment-management service designed for brokers and other fiduciaries responsible for client funds. Already in 2008--in addition to FXGlobalTransfer--we have rolled out FXInfoCenter, which provides forex reference information, historical data and news free of charge.
Our trading volume speaks to the success of the OANDA way: FXTrade has executed as many as 1.5 million forex transactions a day. This is significantly more than the volume typically handled through EBS or any one of the three leading banks who trade forex.
Learn more about how OANDA services can improve the way you do business: http://www.oanda.com.
OANDA is a registered Futures Commission Merchant with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA).