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Invoice Currency Cost
If you invoice in the client's currency, you carry the rate risk until the money arrives. Price the buffer before you quote.
This prices the cost of carrying the currency risk, not the probability of a rate move. The buffer protects the quote; any unused part is margin.
Who carries the rate risk
Invoicing in the client's currency is convenient for the client and risky for you. The rate at invoice date is not the rate at payment date. A buffer in the quote transfers part of that risk back into the price.
Terms are part of the cost
Sixty-day terms expose you to the rate for twice as long as thirty-day terms. If the client wants a longer term in a volatile currency, the buffer should be larger.
Frequently asked questions
Should I invoice in my own currency?
It removes the rate risk but may make the price less attractive. Many freelancers quote in the client's currency with a buffer.
Can I use a forward contract?
Some providers offer them for larger amounts. For small invoices, a buffer is usually simpler.