Oanda corporation Revision 5

Forex Hedge Accounting Treatment  

OANDA’s FXConsulting 

 

for Corporations

   

 

 

- 3 - 

Introduction 

Why Hedge? 

Tapping into the global economy can be an effective way to expand your business. However, the 

success of your company’s international business is tied to foreign exchange rate volatility, with 

constant rate fluctuations contributing to unexpected profits or losses. Forex hedging is meant to reduce 

the risk associated with a company’s exposure to foreign currency balances and transactions. It is in 

your company’s best interests to recognize these risks and formulate a hedging strategy to safeguard 

against currency fluctuations, thereby creating cost and revenue certainty for your foreign currency 

transactions.