The foreign exchange markets are becoming ever bigger and ever more complex. Every day, currencies equivalent to 3.2 trillion US dollars are traded. Given some 260 trading days a year, this means that the annual volume is a staggering 832 trillion US dollars. Only a fraction of this turnover is caused by international trade in goods and services. By comparison, global merchandise trade exceeded ten trillion US dollars for the first time in 2005 according to the World Trade Organization (WTO).

As the market grows, so do the challenges facing risk management. Investments and revenues in foreign currencies require the intelligent deployment of financial instruments to minimise risks and exploit additional opportunities. The benefit of these products is their flexibility. For example, existing or planned financing can be changed in terms of the currencies used without affecting the underlying contract.