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Forward Contracts
Our forward contracts allow you to set your price for a specific date in the future and hedge against market ebb and flow.
Plan For Future Foreign Exchange Payments with Forward Contracts
By taking advantage of our forward contracts, you’re able to secure a currency at today’s price for a specific date in the future, up to five years away. This allows you to reduce risks, especially when managing multi-currency budgets.
Looking for a particular exchange rate on your currency pair? Did you know your Portfolio Manager can set up alerts to keep you updated?
What is a Forward Contract?
A forward contract is a customised financial agreement between two parties to buy or sell a currency, at a predetermined price on a specified future date. These contracts are highly flexible to suit your specific business needs.
Businesses and investors use forward contracts primarily to hedge against potential price fluctuations. By locking in a price today for a transaction that will occur in the future, they can mitigate the risk of adverse movements in the market.
Why Should I Use Forward Contracts?
If you run a business, no matter how big or small, it’s likely you’ll regularly have to meet the cost of large invoices or make orders of goods sold abroad. With a forward or future contract, you can mitigate the risk the currency markets pose, ensuring the prices you pay for items do not rise because of moves in the foreign exchange market.
With the protection they can offer, forward contracts are often used by companies as a strategy to reduce their currency exposure.
Whether you’re a small business importing goods from overseas or a large corporation with operations in multiple countries, understanding how exchange rates can impact your bottom line is essential.
Taking Care Of Your Money
Security and compliance are of paramount importance to us. We adhere to strict and stringent regulations and have robust internal controls in place to protect your funds and minimise any risks to the business or your money.
All transactions are initiated using our secure payment system which ensures each payment is approved internally by multiple users before being processed.
