Capital Markets | Forward Exchange Contracts

What It Is:

Forward Exchange Contracts allow you to enter into an agreement with a bank to secure a fixed exchange rate for a specified amount of foreign currency, for a specific date in the future.

Risks Attached:

  • There is a risk that the market could strengthen or weaken, thereby forfeiting potential gains or losses.

Business Value Add

  • There is no initial margin call requirement, as we will fund this.
  • We will consume the credit risk on your behalf through the use of our DEC Facilities.
  • Managing risk exposure in uncertain times, therefore creating cash flow certainty.