New currency exchange service helps reduce risk for small businesses
I’ve been waiting anxiously for news on the members of the Russian doomsday cult which has been living in a cave for the last 
six months, and finally it came. They’ve all come out. It all went a bit quiet after they went in there in October, armed with little more than some jars of pickled mushrooms and a conviction that the world was about to end. Presumably the mushrooms were chosen because they do not fall into the category of processed food or carry bar codes, both of which the group believes are the work of Satan.
Their belief that the end was nigh was instilled in them by their leader, Pavel Kuznetsov, (currently undergoing psychiatric treatment) who predicted that the apocalypse would happen in April or May. Frankly, having survived the winter, which can’t be pleasant in a Russian cave, I’m a bit disappointed that they threw in the towel at the eleventh hour. Still at least they had a go.
Speaking of predicting the future, most of us can’t. And it’s a brave person these days who knows where these currency markets are going, or is willing to take a risk on them.
To that end, the good news is we have just launched our new forward trading service on the dealing platform, 4X Dealer. For those of you unfamiliar with a forward trade, it is simply ‘buy now, pay later’, and is a useful tool against the unpredictable foreign exchange market.
For example, if you are a business that knows you will receive US dollars in six month’s time, you can eliminate the risk of what the currency rate will be by selling the dollars now for settlement in six months. If the dollar weakens, you are locked into today’s rate. Of course, if it strengthens you will miss out on making extra profit, but many, especially smaller, businesses are more interested in minimising risk than taking a gamble on exchange rates.
We have an easy to use demo which shows you how a forward trade works, I have also been through the product in the attached video. If you want further information you can also check out our news release on the new service.
Forward trading may be the safe option, but just think of it this way. Surely it’s a better way of hedging your bets than sitting in a damp Russian cave with nothing to eat but mushrooms…
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