Currency management

Hedging currency risks in foreign trade

Use active currency management to turn a factor of uncertainty into a reliable basis of calculation.
  • Strike the right balance between hedging, flexibility and exchange rate opportunities
  • Enter into real-time foreign exchange trades 24/7
  • Multi-award-winning online trading platform FX Live Trader Web
Currency management

At a glance

Foreign exchange rates are bound to fluctuate, but your calculation doesn't have to
  • Active currency management, with a full suite of solutions providing certainty and opportunities
  • Opportunity to participate in positive exchange rate developments
  • Full service, from research to real-time foreign exchange trading

The benefits of active currency management

Manage your FX positions efficiently

Ensure the requisite protection for your underlying transactions whilst maximising profitability

Limited currency risk

You are protected against unfavourable exchange rate developments, thereby enjoying certainty to calculate your foreign trade business.

Improved liquidity management

Make the most of your liquidity management across currency borders, including currencies that are not freely convertible.

Customised maturities

Hedges match the maturity of the underlying transaction, including variable terms.

Around the clock in real time

Leverage our online trading platform to engage with forex markets around the world and around the clock – in real time.

On the go and on every device

Increase your flexibility for trading, with more than one hundred currency pairs and access to real-time exchange rates.

Closer to the FX market

Stay up-to-date on current developments on the foreign exchange markets with our renowned forex research.

Commerzbank's currency management

At a glance

Advice

As part of active currency management, Commerzbank offers tailor-made solutions that are characterised by a binding hedging rate and an individually designed opportunity component. There are numerous options for customising the hedging rate depending on market opinion and the client's hedging needs.

Online applications

  • Commerzbank FX Live Trader Web
    Setting new standards in real-time foreign exchange trading: Commerzbank FX Live Trader Web grants you 24/7 access to the latest information and detailed analyses, rates for more than one hundred currency pairs, in-depth research and extensive functionality. The trading platform runs on all common devices – including your smartphone or your tablet – and on all common operating systems.
  • Commerzbank Live Confirm
    Confirm your foreign exchange transactions with just one click. It's quick and easy. Using the SWIFT standard, Live Confirm supports trade confirmations for multiple banks.

Foreign exchange forwards

Foreign exchange forwards are the most widely used instrument in forex management: your company and Commerzbank agree to exchange certain currency amounts on a certain date (the maturity date). FX forwards are binding obligations for both parties, and the exchange rate for the currency pair is fixed at the time of entry into the forward contract. The main goal of FX forwards is to allow you to plan ahead with certainty.

Forex orders

The prices determined on the foreign exchange spot market are often subject to strong fluctuations, even within short periods of time. Various types of forex orders allow you to trade currencies outside your own time zone, or without having to permanently keep watch on foreign exchange markets. In line with the order specifications, orders will be executed automatically, without further consultation, as soon as the defined condition has been met.

Currency options

With the most basic form of currency option, known as a "vanilla" option, you acquire the right, but not the obligation, to exchange certain currencies at a pre-defined date or during a pre-defined period, at a specified rate known as the "strike price". You pay a premium for this right. If the actual exchange rate prevailing on the expiration date is less favourable than the agreed strike price, your company exercises the option by exchanging currencies at the more favourable strike price. However, if the prevailing exchange rate for the currency pair in question is more favourable than the strike price on the expiration date, you are not required to exercise the option – you are free to let the option expire and buy or sell your currencies at the spot rate.

Commerzbank offers many types of options, including complex structures such as callable forwards or hybrid products such as enhanced deposits.

Your contact

Our experts will be happy to advise you on developing your individual risk management strategy.
Jochen Maechtlinger

Head of Financial Markets Sales FX/IR Large Corporates

Fast - Flexible - Mobile

FX Live Trader Web