Forward Points Optimisation: How to reduce the cost of hedging
By Kantox
02/05/2023
Changes in global interest rates put the spotlight on the high cost of carry for businesses hedging the FX risk on assets denominated in currencies that trade at a forward discount and/or liabilities denominated in forward premium currencies.
Can’t get enough? Check out these latest items
https://treasuryxl.com/wp-content/uploads/2026/05/Ripple-Featured.png
200
200
treasuryXL
https://treasuryxl.com/wp-content/uploads/2018/07/treasuryXL-logo-300x56.png
treasuryXL2026-10-30 10:00:512026-10-29 15:55:28Ripple Treasury Turns Treasury Decisions Into Execution With New AI Orchestration Layer
https://treasuryxl.com/wp-content/uploads/2024/01/Template_VACANCY-featured.png
200
200
treasuryXL
https://treasuryxl.com/wp-content/uploads/2018/07/treasuryXL-logo-300x56.png
treasuryXL2026-10-30 07:00:222026-10-29 13:28:04Vacancy | Medewerker Treasury & Insurance Support – Breda
https://treasuryxl.com/wp-content/uploads/2026/10/TreasuryMetrics-BLOGS-featured-1.png
200
200
treasuryXL
https://treasuryxl.com/wp-content/uploads/2018/07/treasuryXL-logo-300x56.png
treasuryXL2026-10-29 10:18:212026-10-29 13:44:38Survey – Treasury Under the Microscope
https://treasuryxl.com/wp-content/uploads/2026/10/TreasurySpring-Template-8.png
200
200
treasuryXL
https://treasuryxl.com/wp-content/uploads/2018/07/treasuryXL-logo-300x56.png
treasuryXL2026-10-28 07:00:532026-10-28 02:37:20Follow the Fed – October
https://treasuryxl.com/wp-content/uploads/2026/04/XLConnect-200.png
200
200
treasuryXL
https://treasuryxl.com/wp-content/uploads/2018/07/treasuryXL-logo-300x56.png
treasuryXL2026-10-26 14:24:512026-10-29 13:07:27XLconnect – Forecast Forward: Building Confidence Today, Getting AI-Ready for Tomorrow
https://treasuryxl.com/wp-content/uploads/2024/01/Template_VACANCY-featured.png
200
200
treasuryXL
https://treasuryxl.com/wp-content/uploads/2018/07/treasuryXL-logo-300x56.png
treasuryXL2026-10-23 07:00:422026-10-22 08:27:42Vacancy | Cash Manager – Amsterdam area
https://treasuryxl.com/wp-content/uploads/2024/12/Francois-Template_BLOGS-Expert-featured-3.png
200
200
treasuryXL
https://treasuryxl.com/wp-content/uploads/2018/07/treasuryXL-logo-300x56.png
treasuryXL2026-10-22 07:00:302026-10-22 08:22:28AI Implementation in Treasury – Attention Points
https://treasuryxl.com/wp-content/uploads/2024/04/Kopie-van-VU-program-200.png
200
200
treasuryXL
https://treasuryxl.com/wp-content/uploads/2018/07/treasuryXL-logo-300x56.png
treasuryXL2026-10-21 07:00:072026-10-20 17:01:07Open Evening VU for Professionals
https://treasuryxl.com/wp-content/uploads/2023/03/Treasurer-Search-Logo.png
200
200
treasuryXL
https://treasuryxl.com/wp-content/uploads/2018/07/treasuryXL-logo-300x56.png
treasuryXL2026-10-20 10:33:222026-10-30 09:41:39Cash Manager – Amsterdam area @ Treasurer Search




Key rule: with unfavourable forward points, delay hedge execution as much as possible with conditional FX orders
Conditional FX orders are orders to execute a spot or a forward transaction — but only when a predetermined limit is reached. In currency management, they are used in different ways:
Want to read more? Download your free whitepaper now!