Currency risk The volatility and uncertainty of the Australian dollar against other currencies can have a major impact on the profit and loss of many Australian companies. Managing foreign exchange risk has become an integral part of the daily activities of exporters, importers, borrowers and investors. An exchange rate is simply the price at which one currency is exchanged for another currency for settlement on a specified date. When dealing with large volumes of money over periods of weeks or months, businesses place themselves at high risk should the exchange rate go in the 'wrong' direction. His team of dealers try to build a working relationship with their clients, where they might try to visit them personally in their place of business three or four times a year.
Clients can visit the dealing room and see where all the action occurs when currencies fluctuate.
They can also discuss their specific needs regularly by telephone. Understanding the Jargon Currency Option Provides protection from adverse exchange rate moves with the flexibility to take advantage of favourable movements if they occur. An AUD Call option is a contract for the right to buy Australian Dollars. An AUD Put option is a contract for the right to sell Australian Dollars. Goods are manufactured on order without guarantee of payment.