If you will pay or receive foreign currency in the future, a move in the rate can quietly change your costs or your margin. Here is how the standard tools work, and a free tool to size the risk on your own numbers.
For commercial hedging and planned payments, not speculation. Three of the four steps work on Canary today; executing a hedge arrives with our payments partner.
Size what a rate move could cost with the scenario tool.
Available now 02Choose tools and how much to hedge, and for how long.
Guide availableBook forwards and orders through the licensed partner.
Coming soon · notify meTrack rates with charts and email alerts on your targets.
Available nowA known payment or receipt in foreign currency on a future date — a supplier invoice, a property completion, tuition.
Prices you have already set (a catalog, a contract) while your costs or revenues are in another currency.
Assets, debts or cash held in foreign currency whose dollar value changes with the rate.
Enter a future payment in foreign currency. Today's rate is pre-filled from the latest ECB reference rate. Move the slider to see the dollar cost if the rate moves before you pay — and what fixing the rate today would mean.
Illustrative arithmetic only. A real forward rate differs from today's spot rate by "forward points", which reflect the interest-rate difference between the two currencies, plus the provider's margin.
| Move | USD value | vs. today |
|---|
These are the tools FX specialists commonly offer. Canary FX plans to offer spot, forwards and orders through its payments partner; options are shown for education. None of these are available through Canary today.
Buy currency at today's rate for settlement now (typically within two business days). Simple and flexible, but you take whatever the rate is on the day.
Agree today on a rate for a transfer on a future date. You are protected if the rate moves against you — but you also give up any gain if it moves in your favour, and you are committed to complete it.
A forward that can be drawn down in parts at any time within a date window, instead of on one fixed date.
Set a target rate better than today's. If the market reaches it, the conversion is booked automatically. If it never gets there, nothing happens.
Set a floor: if the rate falls to that level, the conversion is booked to stop things getting worse. Often paired with a limit order.
The right, but not the obligation, to exchange at a set rate. Protection with the chance to benefit from a favourable move — usually for a premium. Structured variants (such as collars) trade some upside to reduce that cost.
A combination of options that sets both a worst-case rate (the floor) and a best-case rate (the cap). Because the protection is funded by giving up some upside, the upfront premium can be low or zero.
| Tool | Protects against a bad move | Keeps upside | Commitment | Upfront cost |
|---|---|---|---|---|
| Spot | No | N/A | Now | Margin in the rate |
| Forward | Yes | No | Must complete | Usually a deposit |
| Window forward | Yes | No | Must complete within window | Usually a deposit |
| Limit order | No | Yes (to target) | Only if target is hit | None until booked |
| Stop-loss order | Partly (to floor) | Yes | Only if floor is hit | None until booked |
| Option | Yes | Yes | Right, not obligation | Premium |
| Zero-cost collar | Yes (to floor) | Partly (to cap) | Structured contract | Low or none |
A written policy turns currency decisions from guesses into routine. A basic one covers five questions.
List foreign-currency payables, receivables and prices over the next 12 months.
Use the scenario tool to find the move that would hurt your margin or budget.
Many businesses hedge a share of forecast exposure (more for near-term, less for later) rather than all or nothing.
For example: forwards and orders yes; options only with approval.
Name who can book, set limits, and review results against budget each quarter.
Tell us the currency, amount and date. Requests show us where hedging tools are needed most, and we will follow up by email.
Tell us what you need to move and when. We will follow up by email. This is a request for information only — nothing is booked and no money moves.
Want to be first to know when this goes live? Leave your email and we’ll let you know.