Grain Glossary

< BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z A At The Money (ATM) In finance, an option is at the money if the current market price of its underlying asset equals its strike price. Because the underlying asset cannot be bought or sold at a price other than the current market price, at-the-money options have no intrinsic value. Accounts payable A company's accounts payable is the amount of money it owes to its creditors for goods or services it has received, but has not yet paid for. In the context of accounting, accounts payable is classified as a liability, as it represents a company's obligation to pay off its debts. It is recorded in a company's balance sheet under the category of current liabilities, along with other debts and financial obligations that are due within the next year. Appreciation in Currency A currency appreciation in the currency market refers to an increase in the value of one currency relative to another. Simultaneously, the currency appreciation benefits importers as they have to pay less in domestic currency for imported goods. Alt 21 Alt 21 is a digital financial platform designed to let individuals and businesses hedge currency risks. The company's platform offers customizable forex hedging software including options and forwards with real-time rates for pricing in multiple currencies, enabling banks, credit unions, and corporate treasury departments to automate their forex hedging processes and deliver tailor-made financial services. Actual/360 A day count convention is used for calculating interest accrued on Treasury bills and other money market instruments . Uses actual number of days in a month and 360 days in a year for calculating interest payments. < PREVIOUS NEXT >

< Back RECORDING Turning FX into a Competitive Advantage: Harnessing AI’s Potential Watch Now Grain x treasuryXL | Webinar Watch this informative session and learn how AI is transforming currency exchange management. You will gain the insights and tools you need to turn currency exchange into a strategic weapon for your business. In today's globalized economy, currency risk is a major concern for businesses. Fluctuating exchange rates can have a significant impact on profits and losses, and can make it difficult to plan for the future. Utilizing traditional, one-size-fits-all hedging strategies often falls short in providing effective protection for businesses in practical real-life environments. Additionally, the operational challenges associated with managing exposures and settling hedge positions act as barriers to the widespread adoption of hedging inside organizations. Machine learning and other emerging technologies are now helping solve these challenges by enabling automatically tailored hedges. Our panel of industry experts delved into key topics, such as: Leveraging Modern Technologies for Currency Hedging Automation Customizing Effective Hedges through Machine Learning The Impact of AI on Informed Hedging Strategies Utilizing automated hedging techniques to boost competitiveness This live session explored the latest trends in automated AI-based currency risk management and discussed how businesses can leverage AI and emerging technologies to protect themselves and their customers from currency volatility. Watch Now

< BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z F Federal Funds Rate The federal funds rate is the interest rate at which banks lend and borrow overnight balances from each other, known as federal funds, in the U.S. The federal funds rate is an important benchmark for short-term interest rates in the U.S. financial market, and is used as a reference rate for various financial products, such as adjustable-rate mortgages, credit card loans, and small business loans. Fintech The term fintech refers to the use of technology to provide financial services. It can include everything from robo-advisors to mobile banking apps. Fintech is constantly evolving and has the potential to disrupt traditional financial systems by providing more efficient and accessible financial services. Floor In finance, a floor refers to a minimum that cannot be dropped below. An interest rate floor means that a loan is not subject to any other contingent interest rates. Regardless of market conditions, a price floor prevents an item's price from falling below a certain limit. Forward Points Forward points in finance refers to the amount added to or subtracted from the current spot rate of a currency to determine the forward exchange rate for a future delivery date. The forward exchange rate determines the rate at which a currency can be exchanged for another at a future date, based on an agreement made on the spot date. In addition to accounting for the time value of money, forward points are used to correct for differences in interest rates between the currencies being exchanged. The size of the forward point will depend on the difference between the interest rates of the two currencies and the time until the forward contract is set to expire. Foreign exchange (FX) Foreign exchange (FX) refers to the buying and selling of currencies on the foreign exchange market. The foreign exchange market is a global decentralized market for the trading of currencies, and is the largest financial market in the world. Foreign exchange (FX) option A foreign exchange (FX) option is a financial contract that gives the holder the right, but not the obligation, to buy or sell a specified currency at a predetermined exchange rate on or before a certain date. It is a type of derivative instrument that is used to hedge against the risk of fluctuations in exchange rates. Foreign Exchange (FX) Hedging FX hedging is a risk management strategy used by companies to protect themselves from potential losses resulting from changes in currency exchange rates. FX hedging involves buying and selling financial instruments, such as forwards, options, and futures, to offset potential currency exposures in order to minimize the impact of exchange rate fluctuations on a company's financial statements. The goal of FX hedging is to reduce or eliminate the risk of loss due to currency movements, allowing companies to better manage their financial risk and focus on their core business operations. Foreign Exchange (FX) Swap An FX swap is a foreign exchange derivative that allows two parties to exchange an agreed amount of one currency for another currency at a specified rate, on a specified date, and then reverse the trade at a later date. The two legs of the trade are carried out simultaneously for a fixed amount of time, and then reversed later. FX swaps are usually used to hedge currency risk or obtain financing in a different currency. FX swaps are commonly used by banks and other financial institutions, but are also used by companies and individuals to manage their foreign exchange exposures. Foreign exchange (FX) risk - exchange rate risk Foreign exchange (FX) risk is the risk that a company or investor will incur losses due to fluctuations in exchange rates. It is a type of market risk that can impact the value of assets, liabilities, and cash flows denominated in different currencies. Forward Forwards are financial derivatives that allow two parties to exchange assets at a specified price at a specific future date. Contracts are customized to the needs of the parties involved, and terms include the type of asset, the quantity of the asset, and the delivery date. Forwards are often used to hedge against currency risk, commodity price risk, or interest rate risk. In a forward contract, one party agrees to buy the asset at the agreed-upon price on a specific date from the other party. The other party agrees to sell the asset at that price on that date. The forward contract is not traded on an exchange, and the terms of the contract are not standardized. The terms are negotiated between the two parties, and the contract is usually customized to meet their specific needs. Although forward contracts are similar to futures contracts, they differ in some important ways. A futures contract is standardized and traded on an exchange, whereas a forward contract is customized and traded over the counter. Additionally, futures contracts have margin requirements and are marked to market daily, whereas forwards do not. Foreign Exchange (FX) forward contract FX forwards are contracts between clients and their bank, or non-bank provider, to exchange currencies at a set rate on a future date. Contract pricing is determined by the exchange spot price, interest rate differentials between the two currencies, and the length of the contract, which is determined by the buyer and seller. Future Futures contracts are financial derivatives that obligate the buyer or seller to purchase or sell an asset at a predetermined price at a future date. The terms of futures contracts, including the quantity and quality of the assets, the delivery date, and the price, are all determined in advance. Futures contracts are standardized and traded on exchanges. Futures contracts are used to hedge against price risk, or to speculate on the price movements of an asset. The buyer and seller of a futures contract are required to put up a margin, which is a small percentage of the value of the contract. The margin is used to cover any potential losses on the contract. Functional currency A functional currency is the currency of the primary economic environment in which an entity operates. It is the currency in which an entity primarily generates and expends cash, and the currency in which it primarily holds assets and liabilities. For a business, the functional currency is typically the currency of the country in which the business is headquartered. The functional currency is used to determine the appropriate exchange rate to use when translating the financial statements of an entity into a different currency. The functional currency is also known as accounting currency. FX Translation Currency translation is the process of converting one currency in terms of another, often in the context of the financial results of a parent company's foreign subsidiaries into its functional currency. FX Swap In a foreign currency swap, two foreign parties agree to swap interest payments on a loan made in one currency for interest payments on a loan made in another currency. Foreign currency swaps can also involve exchanging principal. When the agreement ends, this will be exchanged back. In most cases, however, notional principal is just used to calculate interest and is not actually exchanged. Floating Exchange Rate In a floating exchange rate system, the currency price of a nation is set according to supply and demand relative to other currencies. A fixed exchange rate, on the other hand, is determined entirely or predominantly by the government. FX Forward Transaction The FX Forward Deal is a foreign exchange transaction based on a foreign exchange rate agreed by the buyer and seller under a foreign exchange contract, delivered on a specified date after the second working day of the transaction, in most cases. FX Netting Netting FX (or Forex Netting ) involves offsetting receivables and payables in one currency with receivables and payables in the same currency. As currency rates move, FX gains (losses) on one position should be offset by FX losses (gains) on the other. Foreign Transaction Fee A foreign transaction fee is a charge assessed by a financial institution to a consumer who uses an electronic payment card to make a purchase in a foreign currency. Foreign transaction fees usually apply to card purchases made in foreign countries while traveling, but they can also apply to purchases made online from your home country where the vendor is foreign and processes the transaction in its local currency. FX Gain / FX Loss An FX gain or loss is reflected in the income statement as a change in value of a foreign exchange-denominated transaction. A sales transaction creates a foreign exchange gain (loss) when the foreign currency appreciates (depreciates) against the company's home currency. Fedwire Fedwire is a real-time gross settlement funds transfer system operated by the United States Federal Reserve Banks that allows financial institutions to transfer funds electronically between the system's more than 9,289 participants (as of March 19, 2009). Upon receiving the proper wiring instructions from the receiving bank, the sending bank can initiate transfers. Foreign Exchange Broker A forex broker, or currency trading broker is a financial services company that provides traders access to a platform for buying and selling currencies. Transactions in the foreign exchange market are always between a pair of two different currencies. Foreign Exchange Commissions Financial institutions or service providers charge foreign exchange commissions for facilitating currency exchange transactions. Commissions are usually calculated as a percentage of the transaction amount or as a fixed fee. Brokers may charge 50% of a pip spread or a fixed commission per standard lot, for example. The amount is deducted from the total cash received during the transaction. < PREVIOUS NEXT >

< BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z T Take Rate A take rate is the fee that a marketplace charges for a transaction that is carried out by a third-party seller or service provider. The take rate is a determining factor in a marketplace's revenue as reported on its income statement: Take rate * GMV (gross merchandise volume) = revenue. Tenor Tenor refers to the time between the maturity date and the maturity date of a financial instrument, such as a bond or loan. The tenor of a financial instrument can be expressed in various ways, such as years, months, or even days. Theta In finance, theta is a measure of an option's sensitivity to time-based changes in price. The Greek letter used in options pricing formulas to represent the amount by which the price of an option is expected to decline over a given period of time, due to the passage of time and the decay of the option's extrinsic value.Theta is typically expressed as a negative number, and it reflects the impact that the passage of time can have on the value of an option. Tick Ticks are units of measurement that represent the minimum price change for a security. Ticks are commonly used for expressing changes in a financial instrument's price, such as a stock, bond, commodity, or derivative, and they represent the smallest increment in a security's price. The value of a tick can vary depending on the security being traded and the market in which it is traded, but it is typically very small. For example, in the stock market, a tick may be equal to one cent for some stocks and $0.01 for others. Ticks are often used by traders and investors to track the performance of a security and to make decisions about buying and selling. Treasury bill (T-bill) T-bills are short-term debt securities issued by the U.S. government. T-bills are sold in denominations ranging from $100 to $1,000,000, and their maturities range from a few days to 52 weeks. Since T-bills are backed by the full faith and credit of the United States government, they are considered to be very safe investments. Investors often use them to park money or diversify their portfolios for a short period of time. T-bills do not pay interest, but they are sold at a discount to their face value, and the difference between the purchase price and the face value represents the return to the investor. T-bills are issued through competitive and noncompetitive bidding processes. Transaction Exposure Transaction exposure is the potential loss a company may incur due to changes in foreign exchange rates on existing financial obligations or expected future cash flows. Companies can use a variety of financial instruments and strategies to manage transaction exposure. Transaction exposure is also known as economic exposure. Trader A trader is a person who buys and sells financial instruments such as stocks, bonds, currencies, commodities, or derivatives in an attempt to make a profit. Traders can work on their own or as part of a larger financial institution, such as a bank or brokerage firm. Translation Exposure / Transaction Risk The translation exposure (also known as the translation risk) is the possibility that an organization's assets, liabilities, or income will change in value as a result of changes in exchange rates. Translation risk occurs when a company has equities, assets, liabilities, or income denominated in a foreign currency. Target redemption forwards (TARFs) Target redemption forwards (TARFs) are complex financial instruments that allow holders to exchange currencies at a better rate than the standard forward rate. Corporate organizations often use TARFs in foreign exchange (FX) markets. With multiple partial settlement dates, they combine a barrier (knock-out) call option and a barrier (knock-out) put option. If the enhanced rate reaches a target level, the product automatically expires if the holder hasn't paid an upfront premium. Tied Gold Tied gold in finance refers to a system where a country's currency is directly linked to gold reserves. Under this system, the value of the currency is backed by a fixed quantity of gold, and the government promises to exchange the currency for a specific amount of gold upon request. It is a form of gold standard. < PREVIOUS NEXT >

< BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z B Balance sheet hedging A balance sheet hedging technique involves using financial instruments to offset potential losses or gains on the balance sheet of a company. Companies typically use it to protect themselves against adverse movements in foreign exchange rates, interest rates, or commodity prices, which can affect the value of their assets and liabilities. Base currency The base currency is the primary currency that is used to quote prices for financial instruments, such as currency pairs in the foreign exchange market. It is also the currency in which financial statements, such as balance sheets and income statements, are typically reported. Bid Bids are offers made by buyers to purchase securities at a specified price. In an auction-style market, such as a stock exchange, bids are made by buyers who want to purchase securities, and offers (also called "asks") are made by sellers who want to sell them. "Bid-ask spread" refers to the difference between prices at which buyers and sellers are willing to buy at a particular moment. Bid prices are typically lower than ask prices, and spreads are the difference between them. Bill of Landing A Bill of Lading (B/L) is a document used in shipping to acknowledge the receipt of goods and to serve as proof of title. The B/L is issued by the carrier (such as a shipping company or a trucking firm) and lists the type, quantity, and destination of the goods being transported. It also serves as a contract between the carrier and the shipper, setting out the terms and conditions of the shipment. Basis Points (bps) Basis points are used to measure a percentage change in a financial instrument's value or rate. One basis point is equal to 1/100th of 1% or 0.01%, which is used to express very small changes in value. A basis point represents a very small percent change in an easy-to-understand manner and is often used to describe changes in interest rates, yields, and other financial metrics. Bond A bond is a debt security issued by a government, municipality, or corporation for the purpose of raising capital. An investor who purchases a bond is essentially lending money to the issuer in return for interest payments and the return of principal at maturity. Companies and governments often use bonds to finance long-term projects and to smooth out their cash flow. Bonds come in many types, including corporate, municipal, and government bonds. Binary Option Binary options are financial instruments that allow speculating on the movement of various assets, such as stocks, commodities, currencies, and indices. It is called a binary option because the outcome is either a fixed payout or a loss. Broken Date Broken dates refer to contracts and financial instruments that have a non-standard or irregular tenor, or length of time until maturity. It is possible to use broken dates in a variety of financial instruments, such as bonds, loans, and derivatives. Butterfly Option The butterfly option is a type of option strategy that involves combining two vertical spreads, which each have four different options with three different strike prices. This strategy takes advantage of a neutral market environment, where the underlying asset's price is expected to remain stable. It involves purchasing two call options at a lower strike price, two put options at a higher strike price, and selling one call option and one put option at the same middle strike price. Budget rate In the context of foreign exchange (FX), a budget rate is a financial projection that estimates the expected exchange rate for a particular currency pair at a future point in time. It is used to help plan and manage resources for international transactions, and to ensure that the costs of the transactions are within the allocated budget. Blocked currency Block currencies are effectively non-convertible or inconvertible. Generally, currencies are blocked because of government restrictions, such as foreign exchange regulations, physical barriers, political sanctions, or extremely high volatility. Barrier option A barrier option is a type of derivative where the payoff depends on whether or not the underlying asset has reached or exceeded a predetermined price. A barrier option can be a knock-out, or a knock-in. Bretton Woods System According to the Bretton Woods system, the dollar was pegged to gold, which in turn was pegged to the price of gold. Despite its collapse in the 1970s, Bretton Woods had a lasting impact on currency exchange and trade through the development of the International Monetary Fund and the World Bank. Bound Bound was launched in 2020 with the vision of making currency conversion and hedging cheap, fair, and most of all, easy. Today, our platforms help hundreds of businesses protect themselves from currency risk across the world. < PREVIOUS NEXT >

< BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z Hedger Hedgers are investors or financial institutions that engage in financial transactions to reduce the risk of potential losses on assets. Hedging involves taking offsetting positions in financial instruments to mitigate the impact of price movements on the underlying asset. There are many different ways that investors and financial institutions can hedge their risks, depending on their specific needs and the nature of the underlying asset. Some common hedging strategies include the use of financial derivatives such as options and futures, as well as the use of diversification and portfolio optimization techniques. Historical Volatility Historical volatility refers to the fluctuations in the price of a security over a specific period of time. Calculated by taking the standard deviation of the natural logarithm of the asset's price over a specified number of trading days. The higher the historical volatility, the greater the price fluctuations of the asset. Historical volatility can be used to help predict future volatility and risk, but it is important to note that past performance is not necessarily indicative of future results. < PREVIOUS NEXT >

< BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A A A A A A A A A A A < PREVIOUS NEXT >

Grain Financial Technology Ltd. Privacy Policy and Online Privacy Notice Last Revised on June 15, 2022 Last Revised on June 15, 2022 Overview And Policy Statement Record Retention Policy Administration Our Commitment To Privacy Updates To Our Privacy Policy Information We Collect Information Collected Via Technology How We Use The Information We Collect About You Information We Share Social Networking Links To Other Websites How We Protect Personal Information Retention Of Information How To Contact Us California Consumer Privacy Statement Overview And Policy Statement Record Retention Policy Administration Our Commitment To Privacy Updates To Our Privacy Policy Information We Collect Information Collected Via Technology How We Use The Information We Collect About You Information We Share Social Networking Links To Other Websites How We Protect Personal Information Retention Of Information How To Contact Us California Consumer Privacy Statement

AI-Driven Currency Hedging Solution Embrace Seamless, Risk-Free Multi-Currency Commerce with Our Automated Cross-Currency Solution Get Started Watch the Video Adaptive Integration, Diverse Platforms Grain is designed to solve the challenges of cross-border commerce in diverse sets of environments, including Software Applications, Marketplaces, and Payment Service Providers. Software Platforms Embed Grain’s API to allow your users to automatically hedge Receivables and Payables from inside your application. Payment Service Providers B2B marketplaces GRAIN'S FLOW This is How it Works Report Platform Transactions Effortlessly integrate via our API or our file uploader. Get Quotes for Your Users Show your customer prices in their local currencies. Let Grain Take 100 % of the Risk Grain takes on the risk of delivering the FX rate promised. Automate Settlement on Due Date Grain exchanges currencies at the guaranteed rate and delivers to you or your customer. Learn More OUR DASHBOARD FX Insights & Management Gain complete visibility and control over your cross-currency activities with our intuitive dashboard. Additional Features for Optimal FX Management Explore the powerful capabilities of our solution designed to simplify and enhance your cross-currency transactions. Seamlessly convert currencies with our efficient spot transactions. Spot Transactions Simplify payments with local currency collections. Local Currency Collection Manage multi-currency wallets to withdraw & handle currencies easily. Virtual FX Accounts See Grain in Action Add FX certainty - without the complexity. Get Started Why is currency protection crucial for my business? Currency volatility can lead to unpredictable financial outcomes, affecting your bottom line. Grain's currency protection ensures stability in your international transactions, allowing for more consistent financial planning and reduced risk exposure. How does Grain protect my business from currency volatility? Grain protects your business from currency volatility through our innovative embedded currency hedging solution. Our data-driven cross-currency approach is designed to shield your transactions from currency fluctuations, ensuring stability on future accounts receivables or payables. Using a straightforward data stream via API or file sharing, Grain assumes all currency risks away from you. What kind of data does Grain require to provide currency protection? Grain focuses on transactional data related to your cross-currency activities. This includes details of international transactions, payment histories, and related financial data. We are committed to maintaining the highest standards of data security and privacy. How does Grain's Machine Learning model enhance FX protection? Our Machine Learning model analyzes past transaction patterns to create FX protection strategies specifically for your business or your end users. This includes creating pricing based on customer behavior, like cancellations and payment delays, thereby minimizing risk and maximizing efficiency. What security measures does Grain take to protect my data? At Grain, we prioritize your data's security and privacy. We use advanced encryption and security protocols to ensure that all data processed through our system is protected. Our commitment to data privacy is backed by continuous monitoring and adherence to the latest security standards. Which currencies does Grain support for transactions? Grain supports a wide range of currencies, facilitated by our multi-currency wallet feature. This allows you to create and manage accounts in various currencies, enhancing your ability to conduct and receive payments globally. Whether you're dealing in major world currencies or more localized ones, our platform is designed to cater to your diverse currency needs. How does Grain currency volatility protection work? Grain's currency volatility protection works through an AI-driven solution. Firstly, it integrates with your platform to report transactions. Then, it provides real-time local currency quotes to your users, ensuring exchange rate certainty. Grain assumes 100% of the FX risk, guaranteeing the rates promised. Finally, on the due date, Grain automates the currency exchange at the guaranteed rate, completing the transaction seamlessly. Do I need the entire payment amount to be processed via Grain? No. You can elect whether to convert the entire transaction amount via Grain, or to only settle the currency offsets How does the Grain Local Collection functionality work? Grain opens multiple cross-currency bank accounts, facilitating seamless local collections for global business operations. FAQs

FREIGHT FORWARDS Safeguard Supply Chains From Currency Volatility Protect profits from currency fluctuations and offer shippers enhanced cargo protection with Grain Book a Demo Watch the Video CROSS CURRENCY HEDGING Explore Our Solutions Explore the powerful capabilities of our solution designed to simplify and enhance your cross-currency transactions. Empower Shippers with Cargo Value Protection Offer shippers the option to protect their cargo value against currency loss Learn More Protect Your Business from Currency Risk Shelter your business from currency related volatility and safeguard your bottom line. Learn More CARGO VALUE PROTECTION Elevate Your Freight Service with Cargo Value Protection Grain's solution allows freight forwarders to offer shippers a value-added-service that protects of their cargo value during transit from cross-currency volatility. Cost Certainty for Shippers Secure cost certainty for international trade, enabling accurate forecasting and seamless budget planning. Competitive Advantage Differentiate your freight forwarding services by empowering shippers with peace of mind and financial stability. Win New Profit Streams Grain shares with you the premiums paid by shippers for the cargo protection services we provide. Cargo Value Protection HOW IT WORKS Currency Stability in Freight Forwarding Provide shippers with unprecedented peace of mind by safeguarding their cargo's value from currency fluctuations throughout the entire shipping process. From PO to delivery. Booking the Shipment The shipper books their shipment through your freight forwarder platform. Choose Cargo Value Protection During the checkout process, shippers are offered the option to protect their cargo value & freight costs from currency changes. Compensate for Currency Loss In the event of currency headwinds, Grain compensates the shipper upon arrival. Shippers can be paid directly or via your platform. END-TO-END SOLUTION Full-Scale Hedging for Freight Forwarders Empower your supply chain with our seamless Currency Hedging solution. Streamline cross-border payments, eliminate currency risks, and safeguard your profits with our intuitive API or file-sharing integration. Financial Certainty Shield your business from currency fluctuations and navigate the global market with unwavering financial certainty. Pricing Transparency Offer upfront and transparent pricing quotes that factor in currency risk, eliminating hidden costs and ensuring financial clarity. Customer Satisfaction Provide consistent pricing that aligns with actual costs, fostering trust and loyalty within our customer base. End to End Why Choose Grain? Unveiling the Key Benefits for Your Business Reduce FX Pains Grain assumes 100% of your currency risk, guaranteeing your FX rates without the hassle of managing FX volatility on your own. Save Costs Lower your cost of hedging and cross-border payments by a typical factor of 80% relative to existing solutions. Boost Sales Integrate a menu of FX modules that brings measurable financial value to your customers. Simplify Financials Enable your customers to pay you over their local rails without any FX risk and without requiring expensive markups. See Grain in Action Add FX certainty - without the complexity. Get Started Why is currency protection crucial for my business? Currency volatility can lead to unpredictable financial outcomes, affecting your bottom line. Grain's currency protection ensures stability in your international transactions, allowing for more consistent financial planning and reduced risk exposure. How does Grain protect my business from currency volatility? Grain protects your business from currency volatility through our innovative embedded currency hedging solution. Our data-driven cross-currency approach is designed to shield your transactions from currency fluctuations, ensuring stability on future accounts receivables or payables. Using a straightforward data stream via API or file sharing, Grain assumes all currency risks away from you. What kind of data does Grain require to provide currency protection? Grain focuses on transactional data related to your cross-currency activities. This includes details of international transactions, payment histories, and related financial data. We are committed to maintaining the highest standards of data security and privacy. How does Grain's Machine Learning model enhance FX protection? Our Machine Learning model analyzes past transaction patterns to create FX protection strategies specifically for your business or your end users. This includes creating pricing based on customer behavior, like cancellations and payment delays, thereby minimizing risk and maximizing efficiency. What security measures does Grain take to protect my data? At Grain, we prioritize your data's security and privacy. We use advanced encryption and security protocols to ensure that all data processed through our system is protected. Our commitment to data privacy is backed by continuous monitoring and adherence to the latest security standards. Which currencies does Grain support for transactions? Grain supports a wide range of currencies, facilitated by our multi-currency wallet feature. This allows you to create and manage accounts in various currencies, enhancing your ability to conduct and receive payments globally. Whether you're dealing in major world currencies or more localized ones, our platform is designed to cater to your diverse currency needs. How does Grain currency volatility protection work? Grain's currency volatility protection works through an AI-driven solution. Firstly, it integrates with your platform to report transactions. Then, it provides real-time local currency quotes to your users, ensuring exchange rate certainty. Grain assumes 100% of the FX risk, guaranteeing the rates promised. Finally, on the due date, Grain automates the currency exchange at the guaranteed rate, completing the transaction seamlessly. Do I need the entire payment amount to be processed via Grain? No. You can elect whether to convert the entire transaction amount via Grain, or to only settle the currency offsets How does the Grain Local Collection functionality work? Grain opens multiple cross-currency bank accounts, facilitating seamless local collections for global business operations. FAQ

< BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z E Electronic invoicing Electronic invoicing (e-invoicing) refers to the creation, exchange, and processing of invoices electronically instead of on paper. E-invoicing involves sending invoices electronically between a supplier and a buyer, usually via the internet. There are several benefits to this method of invoicing over traditional paper invoicing, including increased efficiency, reduced errors and fraud, improved cash flow, and lower costs for printing and mailing. In addition, e-invoicing can be integrated with financial systems, making the accounts payable process easier to automate and improving cash flow visibility. Embedded finance Embedded finance refers to the integration of financial services into non-financial products or services. This can take many forms, such as adding payment or lending functionality to a mobile app or website, or bundling insurance or investment products into a larger offering. Embedded finance aims to make financial services more accessible for consumers by bringing them directly into the products and services they use. Emerging markets Emerging markets refer to countries that are in the process of developing their economies and are considered to be of high growth potential. These countries are often classified as being less developed than more industrialized nations and are characterized by a lower level of per capita income, less developed financial markets, and less mature political systems. Exotic currency An exotic currency is a term used to describe a currency that is not widely traded or used in international transactions. These currencies are typically from smaller or less developed countries, and may be less liquid or more volatile than major currencies. Examples of exotic currencies are the Brazilian Real (BRL), South African Rand (ZAR), Mexican Peso (MXN). Turkish Lira (TRY), Indian Rupee (INR) and Russian Ruble. Exchange rate An exchange rate is the price at which one currency can be exchanged for another currency. It is the value of one currency in terms of another currency, and is determined by the supply and demand for the two currencies in the foreign exchange market. Economic value added (EVA) Economic value added (EVA) is a measure of a company's economic profit, or the value it creates beyond what shareholders require. A company's EVA is calculated by subtracting its after-tax operating profit from its cost of capital. ECB rate ECB rates are foreign exchange reference rates published by the European Central Bank. Every working day, the bank publishes the exchange rate for European currencies against the euro (EUR). < PREVIOUS NEXT >