Analysis Company

Although in Honduras we are still not very familiar with these concepts, there are many advantages, offering derivatives, special mind if used appropriately, it can not only help us to meet the objectives of the company’s profitability, but also to clearly reduce exposure to risk in more than one aspect of risk positions. For this case we focus on the analysis of the advantages of using futures and options for risk management of an importing company, compared to the traditional techniques of purchase of currency at the daily market prices. We need to answer two basic questions: what elements that allow companies to establish exchange rate hedges as a mechanism vital to ensure the development of your business? Economic impact can have the use of foreign exchange risk management mechanisms in the profits of the company? To achieve the answers we need to have the knowledge concept of derivative instruments, its main features, advantages and disadvantages of use according to the expectations of the market, based on the context of a company whose turnover has a significant impact of foreign exchange risk resulting from the import of raw materials and has defined policies and a procedure for risk management activity. Sleep and need to any company importing or exporting is having an estrategiaque access allows you to cover the exchange rate risk to which the institutions of this kind are exposed. To apply any exchange risk hedging instrument, the steps to follow to obtain favorable results include: the identification of risk, having a broad knowledge of the services that are offered for coverage, a correct evaluation of the different alternatives and the choice of the most appropriate and the application at the appropriate time. Choice of the method of coverage is important more appropriate, but that does not totally eliminate losses that can result in poor management of the risk of exchange rate, impacts can be minimized after a correct application of the hedging instrument.