Manage your foreign currency and commodity price risk exposure: DycoTrade’s Advanced Forex, Futures & Hedging Application
The desire to optimise any international business inspired DycoTrade to develop an advanced Forex, Futures & Hedging application (FF&H), providing any Dynamics 365 F&SCM environment with superior functionality on Financial Risk management.
Each internationally operating business is confronted with the issue of managing the exchange rates of foreign currencies. To manage the risk of fluctuating exchange rates between order date and payment date, organisations use Forex contracts to mitigate that risk. Forex contracts are widely available in international banking and DycoTrade’s Advanced Forex, Futures & Hedging Module will register these contracts. Forex contracts can be allocated to a purchase- or sales order, and thus mitigate any foreign currency exchange rate risk on a specific order. Lump sum hedging, without linking a Forex contract to a specific order, is clearly also possible.
The mitigation of your price risk exposure by hedging through Futures is fully supported when using the Advanced FF&H application. Commodity Futures (CX) can be allocated to individual physical sales- and purchase orders, to give you full transparency of your risk position.
The Advanced Forex, Futures & Hedging module is fully integrated with Dynamics 365 and supports standard (financial) postings and functions within Dynamics, but also provides additional functions on hedging, forward rolling and trade books in multi-currency environments.