Derivatives | OTP banka

Derivatives

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FINANCIAL DERIVATIVES

OTP Banka

Currency hedging


If you do business abroad, you are exposed to currency risk. Currency risk represents a potential loss due to a change in the exchange rate, which everyone who does business abroad is exposed to. A change in the exchange rate affects the cash flow of already concluded deals as well as the cash flow that will result from future deals.


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OTP Banka

Insurance against risk


Interest rate volatility has a major impact on the cost of financing your business. Due to the need for a long-term financial planning policy, many companies decide to hedge their interest rate exposure, as they are aware of the speed and strength of change in interest rate trends.


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