FX hedging scenario simulator
What if the rate moves before you settle?
See how agreeing a rate for part of your future currency needs could work. Tell us the currencies you use, your yearly amount and how comfortable you are with risk. We’ll create a simple, made-up example.
Open the simulator- Your currencies, yearly amount and comfort with risk.
- Made-up examples. No live prices or booked trades.
- Protection can help, but there is no guaranteed saving.
Currency protection
See a simple example
Choose what you buy or sell and how much. We’ll show what fixing part of that amount could look like.
Illustrative example only
Your actual exchange rate, costs or savings may differ after Ocean Capital Exchange and the relevant provider review your requirements. These figures are not a live rate or a binding quote.
Your example
Fill in every question, then press Load random example. If you change an answer, the old example is cleared.
Compare one payment (optional)
Positive means more EUR per GBP.
Your scenario will appear here
Enter an amount and three rates, or load the clearly fictional worked example to see how it works.
Keep a copy of this scenario
Your scenario summary is not automatically attached. Paste the copied text into your enquiry, or keep the PDF to share with your account manager.
How it works
A simple way to see the trade-off
Your comfort with risk sets how much is fixed in the example: 75% for risk averse, 50% for neutral, or 25% for comfortable with risk. The rest is left at the future exchange rate.
We spread your yearly amount evenly across four three-month periods. In each period, the example fixes the chosen share in three smaller parts, with made-up dates and rates. Nothing is actually booked.
We then show what you might pay or receive if rates move against you, stay the same or move in your favour. Fixing a rate can help limit an unfavourable change, but can also mean missing out when rates improve. Rates and amounts shown are rounded; fees and other contract costs are not included.
How the optional single-payment comparison works
Direct quotation. Each rate is the quote currency per 1 unit of the base. With GBP as base, GBP value is the foreign amount divided by the rate; with GBP as quote, it is multiplied.
Cross pairs. For EUR/USD the amount crosses into the other currency at the selected-pair rate, then into GBP at a fixed bridge rate you enter. The bridge is unhedged and constant, so only selected-pair risk is shown.
Scenarios. The scenario rate is the reference rate times (1 + movement). Unhedged converts everything at that rate; 100% forward converts everything at the forward; 50% splits the two.
Single-payment tranches. Four equal tranches, each at its own forward rate, all settling together. A 50% row uses tranches one and two; the rest settles at the scenario rate. GBP cash values are summed rather than incorrectly averaging inverse rates. This is not a rolling hedging policy. Without tranche rates, those rows are shown as unavailable.
Margin. Gross profit moves by the business budget effect. Exporter sales also move by the GBP receipt difference; other costs stay fixed.
Excluded. Fees, funding costs, collateral, margin calls and termination costs.
Importer paying EUR 500,000 in 6 months. GBP/EUR reference 1.17, budget 1.15, forward 1.165, tranches 1.172 / 1.168 / 1.165 / 1.161. Budget gross profit £120,000 on £900,000 sales. The GBP/EUR quote falls 5% to 1.1115: one pound buys fewer euros.
- Budget cost
- £434,782.61
- Completely unhedged
- £449,842.56+£0.00 vs unhedged
- 100% single forward
- £429,184.55+£20,658.01 vs unhedged
- 50% single forward / 50% exposed
- £439,513.55+£10,329.00 vs unhedged
- Layered 25% coverage
- £444,037.21+£5,805.35 vs unhedged
- Layered 50% coverage
- £438,597.12+£11,245.44 vs unhedged
- Layered 75% coverage
- £433,432.61+£16,409.94 vs unhedged
- Layered 100% coverage
- £428,637.78+£21,204.77 vs unhedged
Here a weaker pound makes euros dearer, so cover helps. Had the pound strengthened, the same cover would forgo the gain.
Questions about the simulator
What does fixing a rate mean?
It means agreeing an exchange rate for a future purchase or sale of currency. That can make part of your costs or income more predictable. Here, every rate and trade is an invented example: nothing is actually agreed or booked.
How does my comfort with risk change the example?
Risk averse shows 75% fixed and 25% left at the future rate. Neutral shows 50% fixed. Comfortable with risk shows 25% fixed. These are simple example settings, not a personal recommendation about how much you should fix.
Which currency should I use for the yearly amount?
Use the foreign currency you buy or sell. For example, if you buy USD using GBP, enter the total USD you expect to buy over a year. The example then shows what you might pay in GBP. You can also choose other combinations, such as EUR and USD.
Where do the example rates come from?
They are made up by the calculator. Each click on Load random example creates new rates and dates using your choices. They are not live prices, a forecast, a quote or a prediction of what any provider will offer.
Will fixing a rate always save money?
No. It can help when the rate moves against you, but you can miss out if the rate later improves. The example shows both possibilities. Real contract terms and charges also affect the outcome.
Can I still compare a single payment?
Yes. Open Compare one payment (optional) below the simple example. That separate tool lets you enter your own rates and assumptions.
Are my figures sent anywhere?
No. The example is calculated in your browser. Your figures are not sent with analytics or saved as trades. Copy and PDF downloads are local. The enquiry button opens our existing form without attaching your figures. Keep a copy before leaving or refreshing the page.