This guide offers CFOs and finance leaders an introduction to foreign exchange (FX) as businesses increasingly engage in international operations. It covers fundamental concepts such as exchange rates, effects of currency strength, and effective FX risk management strategies. The document aims to educate and provide actionable advice to enhance business practices in FX and includes resources for live market rate comparisons.

1. © Kantox, 2014
The CFO’s Comprehensive Guide
To Understanding Foreign
Exchange For Business
Bettering Your Business FX Operations
By Timothy Woods and Antonio Rami

2. © Kantox, 2014
Contents of this guide
FX Guide
Introduction
1
FX explained
2
FX explained - infographic
3
Exchange rates explained
4
Business foreign exchange explained
5
Effects of home currency strength and how to act
6
Effects of a weak home currency and of increased volatility
7
Choosing an FX provider
8
Advice for effective FX risk management
9
The takeaway: bettering your business FX operations
10

3. © Kantox, 2014FX Guide
“As 2 billion people are now online, exporting has never been easier. With research
now pointing to a 34% productivity increase for businesses that export, it is further
proof that it is now absolutely essential to do so. Companies must if they are to stay
ahead of the curve, or their competitors will beat them to it”.
Philippe Gelis
Co-founder & CEO of Kantox

4. © Kantox, 2014
1. Introduction
FX Guide
Many CFOs and finance leaders are not yet experienced in the FX market. For that reason, we have written this guide, where we
explain the fundamentals of foreign exchange applied to businesses.
As business becomes increasingly international, more CFOs need to educate themselves in foreign exchange for
the good of their companies.
For CFOs
experienced in FX
For CFOs new to FX or
keen to refresh knowledge base
Visit our Benchmark solution for access to live (updated in real-time) mid-market rates. This
service is free of charge for unlimited access, and there is no obligation to trade whatsoever.
Here you can compare your bank or broker on your FX rates. We also hope that the last section
in this guide, Advice for effective FX risk management, will be particularly useful for you.
Benchmark

5. © Kantox, 2014
1. Introduction
FX Guide
Many CFOs and finance leaders are not yet experienced in the FX market. For that reason, we have written this guide, where we
explain the fundamentals of foreign exchange applied to businesses.
As business becomes increasingly international, more CFOs need to educate themselves in foreign exchange for
the good of their companies.
For CFOs
experienced in FX
For CFOs new to FX or
keen to refresh knowledge base
In this guide we analyse the basics of FX, exchange rates, the numerous ways FX can affect
businesses, and we offer some key advice on how businesses can improve and effectively
manage FX risk. We aim to educate you on the fundamentals of foreign exchange, provide
actionable advice and ultimately, better your business approach to FX.

6. © Kantox, 2014
Contents of this guide
FX Guide
Introduction
1
FX explained
2
FX explained - infographic
3
Exchange rates explained
4
Business foreign exchange explained
5
Effects of home currency strength and how to act
6
Effects of a weak home currency and of increased volatility
7
Choosing an FX provider
8
Advice for effective FX risk management
9
The takeaway: bettering your business FX operations
10

7. © Kantox, 2014
2. FX Explained
FX Guide
Foreign exchange (Also known as FX, forex, currency exchange) is the trading of one currency for another. Domestic exchange
involves the exchange of money for goods or services. Abroad, the same is true, but foreign currencies are involved (with the
exception of the Eurozone, in which the 18 Member States all use the same currency, the euro). Therefore, in order to be able to
transact in these foreign currencies, a foreign exchange market is necessary.
There are 2 main functions of the FX market:
The foreign exchange market is the largest in the world, at $5.3 trillion a day, or USD 1,378,000 billion a year,
compared to global GDP of USD 71,670 billion.. It is simply a colossus, unrivalled in size by any other market.
Real
Economy
Speculation

8. © Kantox, 2014
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FX Guide

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