Fx Hedging For The Online Betting Industry
Fx Hedging For The Gambling Industry
The Marketsforu Approach
Gross Gambling Revenue from US/ Chinese players: $4,000,000
In May 2017 the EUR/USD exchange rate is 1.0864. Value is € 3,681,885
By mid Aug the USD has weakened, raising the rate to 1.182. The value is now €3,384,094
Your Loss Euro 297,790
Cost of Option May: €64,051
Guarantees FX rate at least: 1.0864
The USD has gotten weaker so your revenue from grey markets players has been protected
Your gain is €233,739
Assess Your Risks
As an CFO you assess your risks, hedge against possible fluctuations, and insure against that which you can’t control.
Stated bluntly, successful Financial Controllers don’t take intentionally uncalculated risks with their businesses. Why, then, would a business owner loosen those restraints when it comes to investing money?