Budgeting currency to profit margins

 
To be most effective currency risk management strategies should be used coupled with the annual or multiyear budgets, profit margin targets, or other financial measures.  In other words, there needs to be clearly defined goals.  Castle Currency can help by custom tailoring our strategies to meet your goals.  
 
Margin Protection/Threshold Risk – The hedging process is closely monitored and guided by company margin and profitability requirements/targets.  The goal is to maximize potential profit while setting a floor margin acceptable to your company.  Castle Currency can work from specific currency floor price which is established as your minimum acceptable profit level or can also utilize the maximum percentage change the currency effect will have on your company.  
 
Annual or Multi-Year Budget  – The hedging process is closely monitored and guided by company budget requirements/targets. The goal is to meet or exceed the budget expectations without any downside surprises.  As the budget progresses, Castle Currency will alter hedging strategies and amounts to accommodate cash flows, changes to budget expectations and currency movements. If during the budget period, the minimum acceptable budget occurs, the full remainder of any risk will be neutralized. At the end of the budget period all hedging strategies will have been wound down.  
 
 
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