Many small businesses and individuals are simply not aware of the options they have, and/or are afraid of complex financial derivatives. They may be afraid of being scammed or just lack attention to their inbound and outbound FX flows. Forward exchange contracts are actually a quite simple tool that act as a complete hedge to exchange rate movements (agreeing today’s exchange rate for a point in the future) and thus can help to remove exchange rate volatility at no extra cost. By agreeing today’s exchange rate for a point in the future, it also allows individuals and businesses to budget their finances more effectively for the year ahead.