--- title: The HOW of Hedging | Corpay description: "The HOW of Hedging: How you build your strategy, implement it and monitor it." image: https://cb.corpay.com/hubfs/Imported_Blog_Media/2.jpg --- [Skip to content](https://cb.corpay.com/resources/blog/the-how-of-hedging#main-content) ![Corpay Cross Border Payments](https://cb.corpay.com/hs-fs/hubfs/Corpay_Final-Logo_No-TM_Two-Tone_Black.png?width=130&height=35&name=Corpay_Final-Logo_No-TM_Two-Tone_Black.png) - [Blogs](https://cb.corpay.com/resources/blog) - [Whitepapers](https://cb.corpay.com/resources/whitepapers) - [Case Studies](https://cb.corpay.com/resources/case-studies) Open main navigation Close main navigation - [Blogs](https://cb.corpay.com/resources/blog) - [Whitepapers](https://cb.corpay.com/resources/whitepapers) - [Case Studies](https://cb.corpay.com/resources/case-studies) - [Contact us](https://www.corpay.com/contact-us/cross-border) [Contact us](https://www.corpay.com/contact-us/cross-border) Nov 15, 2023 # The HOW of Hedging ![Picture of Corpay Cross-Border](https://cb.corpay.com/hs-fs/hubfs/Brand%20Logos/Corpay_Final_Avatar_caret_dark.png?width=50&name=Corpay_Final_Avatar_caret_dark.png) [Corpay Cross-Border](https://cb.corpay.com/resources/blog/author/admin) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://cb.corpay.com/resources/blog/the-how-of-hedging) [Share this page on LinkedIn](http://www.linkedin.com/shareArticle?mini=true&url=https://cb.corpay.com/resources/blog/the-how-of-hedging) [Share this page on Twitter](https://twitter.com/intent/tweet?url=https://cb.corpay.com/resources/blog/the-how-of-hedging) [Share this page on Email](mailto:?body=https://cb.corpay.com/resources/blog/the-how-of-hedging) # **The HOW of Hedging:** **How you build your strategy, implement it and monitor it** Next, we address the HOW: building your strategy, implementing it. And reviewing and monitoring it. A good strategy can remove a lot of the uncertainty about whether or not you should be hedging. No strategy is perfect, but the key is to have one to begin with. You can always work on improving it, which, in my opinion, is a lot better than having no strategy at all.     Here are some important considerations that will help you develop and implement your strategy:   - Pricing. Pricing is not an accounting item but a component of your business. Consider how you price your product, for how long your prices are fixed, and how often you can change your pricing.   - Your risk profile. Everybody's risk profile is different. Are you comfortable taking on some of the currency risk, warehousing some of the risk, yourself?   - Your budgeted rate. What is the rate you need to achieve on your FX in order to protect your margins? And is that rate achievable?   - Your financial position. If you are in a good financial position, you might decide to hedge a portion of your requirement.   - Your competition. In a highly competitive business sector, currency hedging might be a challenge.   - Execution. Can you execute the plan that you have in place and the strategy you have in place? Do you understand the products you are using and the possible outcomes? And are you able to stay the course? At times you may be tempted to change your strategy because of a view on the market.     Each business is different, with a different risk appetite. It's not what a competitor or a vendor might do, or based on the opinion of someone unrelated to your business. It’s your business and your strategy. Your business will tell you what you ought to be doing.     [Download your copy](https://assets.ctfassets.net/h83dujey17us/6jXlVJFzruzxX3PhnbAWkR/7d4b53def544eb5620019abc43e43e0f/The_Why__How_and_What_of_Hedging_Currency_Risk_-_The_HOW.pdf)   [Alternatively, click here to read the entire program!](https://cross-border.corpay.com/why-how-what-of-hedging/) [Currency Risk Management](https://cb.corpay.com/resources/blog/tag/currency-risk-management) ## Related posts [![](https://cb.corpay.com/hs-fs/hubfs/Imported_Blog_Media/stephen-dawson-qwtCeJ5cLYs-unsplash-v2.jpg?height=200&name=stephen-dawson-qwtCeJ5cLYs-unsplash-v2.jpg)](https://cb.corpay.com/resources/blog/foreign-exchange-hedging-for-businesses-explained) [Currency Risk Management](https://cb.corpay.com/resources/blog/tag/currency-risk-management) ## [Foreign exchange hedging for businesses: Your questions answered](https://cb.corpay.com/resources/blog/foreign-exchange-hedging-for-businesses-explained) ![Picture of Darryl Hood](https://cb.corpay.com/hs-fs/hubfs/Imported%20sitepage%20images/image-Jul-15-2025-05-34-38-5901-PM.webp?width=50&name=image-Jul-15-2025-05-34-38-5901-PM.webp) [Darryl Hood](https://cb.corpay.com/resources/blog/author/darryl-hood) Mar 10, 2023 What is foreign exchange hedging? Foreign exchange hedging is used by businesses to manage their... [Read more](https://cb.corpay.com/resources/blog/foreign-exchange-hedging-for-businesses-explained) [![](https://cb.corpay.com/hs-fs/hubfs/Imported_Blog_Media/Glass_pattern_in_the_skyscraper_city.jpg?height=200&name=Glass_pattern_in_the_skyscraper_city.jpg)](https://cb.corpay.com/resources/blog/leveraging-treasury-centers-for-efficient-global-cash-management-and-fx) [Currency Risk Management](https://cb.corpay.com/resources/blog/tag/currency-risk-management) ## [Leveraging Treasury Centers for Efficient Global Cash Management and FX Optimization](https://cb.corpay.com/resources/blog/leveraging-treasury-centers-for-efficient-global-cash-management-and-fx) ![Picture of Robbie Norton](https://cb.corpay.com/hs-fs/hubfs/Imported%20sitepage%20images/Robbie%20Norton.webp?width=50&name=Robbie%20Norton.webp) [Robbie Norton](https://cb.corpay.com/resources/blog/author/robbie-norton) Sep 19, 2024 Multinational corporations face the challenge of managing cash flows and foreign exchange (FX)... [Read more](https://cb.corpay.com/resources/blog/leveraging-treasury-centers-for-efficient-global-cash-management-and-fx) [![](https://cb.corpay.com/hs-fs/hubfs/Imported_Blog_Media/AFP_Survey_Check_use_drops__but_still_plenty_of_room_for_efficiency_gains.jpg?height=200&name=AFP_Survey_Check_use_drops__but_still_plenty_of_room_for_efficiency_gains.jpg)](https://cb.corpay.com/resources/blog/currency-conversion-and-global-trades-hidden-costs) [Global Payments](https://cb.corpay.com/resources/blog/tag/global-payments) ## [Currency Conversion and Global Trade’s Hidden Costs](https://cb.corpay.com/resources/blog/currency-conversion-and-global-trades-hidden-costs) ![Picture of David Britten](https://cb.corpay.com/hs-fs/hubfs/Imported%20sitepage%20images/1648774441013.jpg?width=50&name=1648774441013.jpg) [David Britten](https://cb.corpay.com/resources/blog/author/david-britten) Feb 18, 2023 David Britten, Corpay Managing Director, APAC Australian companies and overseas organisations... 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