eyko Ideas
A hedge is only as good as the exposure it is sized against. An FX Hedging Optimization Playbook reads forecast receivable and payable positions by currency from your ERP and bank feeds, nets the offsets, and surfaces the unhedged exposure that moves the number with the cost of covering it attached.
The Challenge
Exposure is often hedged position by position, ignoring the offsets. A EUR receivable and a GBP payable are covered separately, so the company pays to hedge risk that already cancels out, and the true net exposure stays unclear.
A spreadsheet can total the foreign-currency balances, but it cannot tell you how much is actually at risk over the settlement horizon at current volatility. So the hedge is sized to the position, not to the dollars genuinely on the line.
Currency exposure moves as receivables and payables settle and as rates shift. A hedge sized off last month, against timing that has since moved, covers the wrong amount on the wrong tenor by the time it is placed.
How eyko Solves It
An FX Hedging Optimization Playbook connects to your ERP, bank feeds, AR, and AP, projects forecast exposure by currency pair on a regular beat, nets the offsetting positions, and surfaces the unhedged exposure that matters with the amount at risk and the cost of covering it ranked behind it.
Forecast currency exposure over the next quarter is led by a 7.2M EUR receivable position against a USD functional currency. At current volatility, that puts roughly 0.6M at risk over the settlement horizon, the largest single currency risk this quarter.
| Metric | Current | Benchmark | Status |
|---|---|---|---|
| Primary indicator | Flagged | Target | Action needed |
| Secondary indicator | Monitoring | Within range | On track |
| Trend direction | Declining | Stable | Review required |
FX hedging optimization sizes hedges against forecast currency exposure rather than current balances. The Playbook reads receivable and payable positions by currency from your ERP and bank feeds, then quantifies how much is at risk over the settlement horizon at current volatility, so treasury sees the dollars genuinely on the line, not just the foreign-currency totals sitting on the balance sheet.
This is decision intelligence in practice: the what, the why, and the what next from your live data.
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View IdeaFAQ
Everything you need to know about FX Hedging Optimization.
FX hedging optimization sizes and times currency hedges against forecast exposure rather than current balances. eyko reads receivable and payable positions by currency from your ERP and bank feeds, nets the offsetting positions, quantifies how much is at risk over the settlement horizon, and recommends the cover that removes the net exposure for a known cost.
Hedging gross means paying to cover risk that already cancels. A EUR receivable and a GBP payable partially offset, so the exposure that actually moves the number is the net position. The Playbook nets the offsets first, then recommends cover only on the residual risk, which avoids the cost of over-hedging.
It reads from your ERP general ledger, AR and AP, and your bank feeds, alongside any data platform you already run. There is no separate data project to start, and it works with systems such as SAP, Oracle, NetSuite, and Workday.
Once connected, the Playbook returns forecast exposure by currency pair and the recommended hedge on its next beat, in minutes rather than the days a manual build usually takes, then refreshes as receivable and payable timing changes so the hedge stays matched to the cash.
Join the enterprises replacing weeks of manual analysis with a single prompt. See what eyko Playbooks can do with your data.
