top of page
Need help with hedging?
Forge aHedge provides articles and guides to help you learn to manage your commodity and FX risk with clarity and confidence.
Strategic Treasury: Don’t report simple coverage; show business consequences.
Tip 2: Don’t report simple coverage; show business consequences. Positions versus Business Impact Many treasurers and systems report simple exposure coverage numbers to CFOs and the board. “Our copper is 80% covered” for instance or “we have 50 tonnes of cocoa unhedged”. This is a bit like saying “we’re going on holiday and we’re 80% packed.” It’s great unless the missing 20% contains your passport. Or it’s like advising the fuel tank is 70% full; which is only informative if
3 min read
Building a More Strategic Treasury: Practical Tips
Practical tips for treasurers to become strategic partners. Tip 1: spot hidden commodity and FX risk in contracts before procurement signs.
3 min read
What does "Value" really mean?
Value is one of those words we use all the time, yet it means something different to everyone. For some, value is about saving money. For others, it's about saving time. Some find value in simplicity, while others value reliability, confidence, or the freedom to focus on what matters most. The truth is, value isn't measured by what something costs — it's measured by what it enables. It might mean: Better decisions Greater productivity Reduced risk Opportunities that simply we
1 min read
Hedging myths IX - "Hedging is too complex"
Theseus volunteered to enter the Labyrinth on Crete and kill the Minotaur, a monster that was half man and half bull. Ariadne, the daughter of King Minos, fell in love with Theseus and gave him a sword and a ball of thread. Theseus tied the thread at the entrance so he could find his way back through the maze. He killed the Minotaur and escaped by following the thread. Fascinatingly, the modern word ‘clue’ originates from the Middle English ‘clewe’, meaning a ball of thread,
2 min read
Hedging myths VIII - "Hedge accounting is just paperwork. We'll sort the documentation later."
Apollo, enamored by Cassandra’s beauty, offered her the gift of prophecy in exchange for her love. Cassandra initially accepted the gift but later rejected Apollo. In retaliation, Apollo cursed her so that no one would ever believe her prophecies, turning her divine gift into a source of endless frustration and tragedy. Today we have the concept of the Cassandra complex, which describes situations where valid predictions or concerns are dismissed or disbelieved Every company
1 min read
Hedging myths VII - "We don't need a formal policy — our treasurer knows what they're doing."
Atlas sided with the Titans in their war against the Olympians. When the Titans were defeated, Zeus condemned Atlas to hold up the sky on his shoulders, alone, forever. The moment he stepped away, it would fall. Today he gives his name to the Atlas Mountains, the Atlantic Ocean, and of course, the eponymous geography guide. A lot of treasuries are built on an Atlas. One person knows the exposures, the hedge ratios, the bank relationships, the reasoning behind every position.
1 min read
bottom of page