Question 1

What's a blend?

Accepted Answer

Blending means locking part of your exposure now and leaving the rest open: one ratio across your whole position. It covers part of your exposure with a forward and leaves the rest to exchange at the spot rate on the day, so your final rate is the average of the two. If the market moves in your favour, the spot portion improves on the forward and your blended rate beats a full hedge; if it moves against you, the spot portion drags it below the forward, though you're still better off than leaving it all exposed. That's the trade-off: a blend splits the risk, giving you some certainty and some exposure. You choose the split, and a BLK.FX specialist can help you decide what's right.

Question 2

What does 1σ (sigma) mean?

Accepted Answer

Sigma is the size of a typical market move for a currency pair over a given period, worked out from how much that pair actually moves, not a forecast. Our headline 'typical adverse move' is the middle of the range of adverse moves (0.674σ): as often as not the move is smaller, and there's roughly a 1-in-4 chance it's worse. A full 1σ move is larger, with roughly a 1-in-6 chance of being exceeded, and we show it as a secondary figure in the detailed view. A 2σ move is rare (about 1-in-44) and a 3σ move is crisis-level (about 1-in-700).

Question 3

What are forward points?

Accepted Answer

Forward points are the difference between today's spot rate and the rate you can lock in for a future date. They come from the interest-rate gap between the two currencies over that period, not from a forecast of where the market is going. Depending on the pair and how far ahead you're looking, a forward can be better or worse than spot.

Question 4

Is the forward rate the same as the spot rate?

Accepted Answer

No. A forward locks in a rate for a future date, which is the spot rate adjusted by forward points. This tool shows an indicative forward based on interest-rate differentials. Your exact, executable forward rate comes from a BLK.FX specialist.

Question 5

What is a budget rate?

Accepted Answer

A budget rate is the exchange rate a business uses to build its annual plan, prices and margin expectations. It may come from the planning rate available at the start of the year, a rate already protected by contracts, or a deliberately cautious assumption. When the market moves away from it, the gap shows how much of the planned margin is exposed rather than predicting what happens next.

Question 6

What is a forward contract?

Accepted Answer

A forward contract locks an exchange rate now for a payment or receipt on a future date. It removes the effect of later market moves from that amount, although the forward rate can differ from spot because of forward points. Forwards typically need a 3% to 5% deposit held until settlement, with the exact level depending on the currencies, tenor and provider.

Question 7

What is a flexible forward?

Accepted Answer

A flexible forward fixes a rate but gives you a window rather than one settlement day. You can draw it down in portions as invoices fall due, and the undrawn balance remains available until the window closes. In FX.Exposure, each drawdown reduces both the relevant open payment and the remaining deal balance.

Question 8

What is my exposure, exactly?

Accepted Answer

Your exposure is money your business will pay or receive in another currency before it is converted. Payments and receipts in the same currency offset first, so the app shows the net need rather than adding both sides together. Different currencies remain separate because they do not offset one another.

Question 9

What does the cover percentage mean?

Accepted Answer

The cover percentage is the share of the open net exposure protected by deals that supply the currency the business needs. A deal only counts when it is in the correct currency and on the correct side, and a flexible forward counts only its remaining undrawn balance. The same rule feeds the headline, currency cards, calendar, reports and emails.

Question 10

How is the rate here different from my bank's?

Accepted Answer

FX.Exposure shows an indicative mid-market rate, the neutral reference between buyers and sellers rather than a rate available to trade. An executable BLK.FX rate typically includes a margin of around 0.5%, confirmed at execution and varying with size and currency. Banks commonly build in 1% to 3%, so the comparison is between the same mid-market starting point and two different margins.

Question 11

When is the right time to hedge?

Accepted Answer

Nobody can consistently time the currency market. A written policy sets the amount and timing of cover before a market move creates pressure, while PAST shows what different choices would have done on the same flows. That evidence describes the range of outcomes; it does not predict the next one.

Question 12

What happens at settlement?

Accepted Answer

On the settlement date, the booked deal delivers the currency at its agreed rate. A flexible forward can deliver in smaller drawdowns during its window as invoices fall due. Recording the settlement or drawdown in FX.Exposure removes the paid amount from the open book and reduces the remaining deal balance.

Question 13

Can I give my accountant or a client access?

Accepted Answer

Yes. SHARE WITH CLIENT gives the invited person view-only access to that company. A viewer can read the position, policy, history and board pack, but cannot edit numbers, record deals, rebuild policy or share access with anyone else. Other companies in the owner account remain private.

Question 14

Is my data secure?

Accepted Answer

Company data is protected by per-company access rules, so a signed-in person can only reach companies they own or have been invited to view. Viewers cannot write to company records, and FX.Exposure does not hold card details. The service is operated by BLK.FX Ltd, a UK company registered in England and Wales.

Question 15

How do I get a live rate?

Accepted Answer

Send your exposure to us on WhatsApp or book a free 30-minute call, and a specialist will come back with a live, executable rate.

Question 16

What's a rate alert?

Accepted Answer

A target level you set for a currency pair. We check the market every 15 minutes and email you once when your rate hits, so you don't have to watch it. Alerts need a free account, since we have to have a verified email address to notify. Set one on the Rate Alerts page: fill in the form while signed out and we'll hold your alert, then activate it automatically as soon as you've signed up. When you want that rate to execute automatically the moment it hits, BLK.FX can place it as a limit order or stop-loss.

Question 17

Where do alert emails get sent?

Accepted Answer

To your login email by default. If you would rather they went somewhere else (a shared finance inbox, say), set a notification email on the Settings page and every alert email goes there instead.

Question 18

What's a limit order?

Accepted Answer

You name a better rate than today's. If the market touches it, the deal executes automatically, even overnight. BLK.FX places the order.

Question 19

What's a stop-loss order?

Accepted Answer

You name a worst-acceptable rate. If the market falls to it, the deal executes so the exchange rate on that amount cannot get worse than that level. BLK.FX places the order.

Question 20

Rate alert vs market order: what's the difference?

Accepted Answer

An alert in FX.Exposure nudges you when a rate is reached but does not trade. A market order executes automatically at the agreed level, including overnight, and is placed with BLK.FX. It costs nothing to place and can be cancelled or moved free of charge before it fills; after execution it is a booked deal.

Question 21

When would I use a limit order instead of a forward?

Accepted Answer

A forward fixes a rate now for a known future date. A limit order waits for a better rate and executes only if the market reaches it. The Market Orders guide sets out the evidence for each route.

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