Create an FX Hedge Position for a QP via the FX Exposure Report

This activity create an FX hedge position for a quotation period (QP). Invoice instalments can be allocated later if required.

Security Note: You need the Allow the user to maintain hedge actions security right in the Accounting user group security rights group for this activity.

Activity Steps

  1. Open the FX Exposure.
  2. Search for exposure for a company across a date range. See View Foreign Exchange Exposure.
  3. Perform one of the following steps:
    1. To create a futures contract, right-click the exposure for a QP and select Hedge » Hedge Action from the menu.
    2. To create a spread contract or a swaps contract, right-click the exposure for a QP and select Hedge » Related Actions from the menu.

      The menu displays applicable market commodities, each with its associated market.

  4. Select the market commodity for which to create the hedge position.

    The New Hedge Action screen displays.

    Note: The Contract Type and Transaction Type are inherited from the default types specified for the market commodity.

    The District is inherited from the search criteria of the Foreign Exchange Exposure report.

    The Number Of Contracts defaults to a value that is sufficient for the Quantity of the FX hedge position to be greater than the exposure of the QP. Keeping this default means that the QP is overhedged.

  5. As applicable for the FX hedge position's contract type, see the following activities for further steps:

    Note: Some steps can only be completed on the Hedge Actions tab of the Hedging Explorer after searching for the hedge position. Despatch orders or quotas can be allocated to the hedge position if there is sufficient unallocated quantity in the hedge position.

    Note: The hedge position must be locked to affect the exposure displayed in the Foreign Exchange Exposure report. See Lock Hedge Positions.