A firm may be able to reduce or eliminate currency exposure by means of internal strategies such as 1. Currency Invoicing 2. Netting and Offsetting 3. Leading and Lagging 4. Indexation Clauses in Contracts 5. Switching the Base of Manufacture 6. Re-Invoicing Center. Internal Strategy # 1. Netting and Offsetting:A firm having multiple transactions with the rest of the world will also have exposure to receivables and payables in different currencies. To reduce the exposure risk in each currency, the firm can net out its exposure in each currency by matching its receivables with payables. This technique consists of accelerating or delaying receipt of payment in foreign exchange as warranted by the position or expected position of the exchange rate. Sometimes, a currency might have a receivable in one currency say, DM, and a payable not in the same currency but a closely related currency such as Swiss francs; the exposure arising from the same can be offset. Internal Strategy # 2. Leading and Lagging:The exporting firm is expecting to receive the payment after a few periods in the future from the customer to whom goods, commodities, or services are sold, and of the opinion that local currency will depreciate, in such case he will like to receive the payment later on because monetary gain will happen. Such a concept of delay the receipt of remittance is known as Lagging. In case of payment in foreign currency, and if the local currency is expected to be depreciated then the local importer would like to release the payment at an early date, is known as Leading. Therefore, the internal techniques for managing foreign exchange exposure are Netting, leading, and lagging. ?Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset and have a predetermined future date and price. A futures contract allows an investor to speculate on the direction of a security, commodity, or a financial instrument.