💱 FX Risk Calculator

Calculate foreign exchange exposure and potential gains/losses from currency volatility

Exposure in GBP—
Expected Movement—
Worst Case Loss—
Best Case Gain—
Value at Risk (VaR)—

Scenario Analysis

1% adverse move—
3% adverse move—
5% adverse move—
10% adverse move—

This is a simplified risk calculation. Actual FX risk depends on many factors including interest rates, economic data, geopolitical events, and market liquidity. Not financial advice. Consult a qualified FX advisor for hedging strategy.

Live Exchange Rates

Reference rates from ExchangeRate-API:

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Understanding FX Risk

  • Transaction Risk: The risk that exchange rates move between agreeing a price and settling a payment
  • Translation Risk: When foreign assets/liabilities on your balance sheet change value in GBP terms
  • Economic Risk: Long-term competitive exposure to currency movements affecting business value
  • Hedging Options: Forward contracts, FX options, currency swaps, and natural hedging (matching revenues/costs in same currency)