We offer actionable trade signals for over 30 currency pairs, along with 6 Crypto Coins.
Exposure to a foreign currency introduces risk and volatility to any portfolio. Currency exposure can exist when a portfolio is holding foreign assets or when account payable or account receivable are holding balances in foreign currency. Correlation between the movement of the currency prices and underlying assets is typically low, thus an overlay program can reduce overall portfolio volatility, as well as reduce the extreme unexpected FX return outcome – positive or negative.
Our Adaptive Hedging Service is designed to reduce risk, lower volatility, and possibly even generate additional income. Overlay Capital has a unique methodology that generates daily hedging signals designed to manage the underlying exposure. These signals can be delivered to our customers via email, instant messenger, and our website. The information can be delivered via a monthly subscription where you can perform the hedging process, or we can implement and administer the hedging program for you as a full-time dedicated overlay service.
Tick data for 30 currency pairs.
Daily data for broad group of currencies.
Creating Yield through Currency Swaps - The world of Overnight Money Markets and the Foreign Exchange Markets are closely related. As interest rates rise and fall, a form of arbitrage opportunity presents itself in the Foreign Exchange Market. This form of Carry Trade creates new price discovery mechanism for the Overnight Money Market that eventually brings equilibrium between the overnight interest rates in domestic money markets and those achieved in the OTC FX swap markets.
The OTC FX swap market represents the interest rate differential between two countries. By using the FX swap market prices and the federal reserve effective fed funds rate, we are able to generate daily yields for each country. Combining this with our Indicators, creates a unique hedging strategy.