Dynamic forward

The best of all worlds

DYNAMIC FORWARD™ is an advanced risk management solution, based on plain-vanilla instruments combined with advanced economic models and academic research, that provides superior protection results with substantially lower collateral demands.


Fluctuation in currency exchange rates, commodity pricing, interest rates and stock values is unavoidable.
This is why your global business is constantly exposed to the risk of uncertainty, especially when long-term planning is involved.
Over time, and with transactions in the tens and hundreds of millions of dollars, these fluctuations can have a drastic effect both on your profitability and your ability to manage cash flows and balances.


Today, you are probably utilizing one of the three most common hedging strategies available today, each with its own benefits, but also with noticeable disadvantages

Do Nothing

Often, you might opt to do nothing

On the upside - Doing Nothing is the simplest solution, and on the very long term you are probably fine

However, it is also the riskiest alternative, and exposes your business to high volatility in short-medium terms due to the uncertainty of market fluctuations

And puts you in a severe insolvency hazard

Simply put, doing nothing to hedge against market fluctuations means
you are implementing a "hope and pray" strategy

Put/Call Insurance Options

Put/call insurance options are binding contracts that specify the price at which
a currency, commodity, or interest rate can be bought or sold at a future date in exchange for a relatively high premium

Put/Call options are good short term solutions for standalone positions

But they are costly over time

Resulting in long-term losses

And create ISDA exposure

Effectively, put/call options are a decent solution if you make infrequent
short-term transactions, but become very costly over the long run, and result in frequent losses

Future Contracts

Forwards are binding contracts for the purchase or sale of a currency, commodity, stock option or interest on a future date

Forwards are great
short term coverage

Easy to execute

With no up-front fees

But no potential for
future upside profit

And accumulate
long-term indirect costs

But mainly

You are 'locked in' with a set exchange rate
and no ability to compete

If the exchange rate appreciates
there is an immediate margin call
and you may encounter cash flow problems

If the exchange rate depreciates you've only
delayed the problem and you may encounter cash flow problem and face a bigger challenge when you


Vital OP has developed a sophisticated and "smart" approach to hedging against fluctuation risk that allows
you to avoid heavy up-front fees while maintaining flexibility, and based on "plain-vanilla" instruments.

DYNAMIC FORWARD™ constantly monitors and tracks the market, and adjusts over time, repositioning according to ongoing
challenges thus allowing the client to fit the hedge to its needs rather than to the needs of the hedging instrument.


Working capital liquidity

Cash flow flexibility
allowing competition

Long term protection

Substantially lower

Dynamic Forward vs. Current Available Alternatives

Profit / loss due to change in exchange rate

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