Currency Risk Assessment Tool
Quantify Risks That Can Be Avoided by Forex Hedging
This tool helps you estimate the benefits of using carry spot forex hedges on foreign currency amounts. It shows carry spot hedging costs and compares them to the potential losses that could result from unfavorable future forex rate changes if you didn’t hedge. Click the Add New Row button to add and compare additional foreign currency exposures.
For each currency exposure, you must specify the currency, the amount—use a minus sign for liabilities—and the number of days the foreign currency is outstanding. The tool uses historical currency volatility data to estimate the forex amount at risk.
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| Your Reporting Currency | |
| Foreign Currency Exposure Review | ||||||||
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| Foreign Currency | Asset (Liability) | Days | Amount at Risk | Estimated Hedging (Cost)/Benefit | Risk Avoided by Hedging | |||
The learning materials on this web site have been developed to enable users to develop an initial level of knowledge of hedge accounting and forex hedging. OANDA does not guarantee the content to be a complete analysis of hedge accounting or forex hedging. The material does not guarantee that users will obtain a complete knowledge of hedge accounting, and will not facilitate making accounting judgments or give users the ability to make hedge accounting decisions.
Examples and other materials on this website are solely for illustrative purposes and should not be relied on for technical answers on technical issues. Before making any hedge accounting decisions, companies should consult their accounting professionals to discuss their specific situations and fact patterns. Neither OANDA nor any of its employees accept any liability whatsoever for any loss or damage, however caused, arising from the use of these tools or documents.
