Align your business goals with your approach to FX…
Foreign exchange products vary to suit specific goals. Businesses may even utilise different products simultaneously for projects which vary according certain factors including profit margin or time to completion. With time-poor CFOs and Finance Teams under increasing pressure to meet reporting and accounting timelines, it’s no wonder the underlying FX transactions are sometimes treated as an afterthought.
An FX Corp specialist can assist your finance team to consider and select suitable FX products without jeopardising their other responsibilities. Lean on our resources and experience to select FX products which will maximise your chances of success and reduce the impact of unfavourable currency movements.
Spot Contracts
Key benefit: flexibility
Spot contracts are the most basic and commonly used form or foreign currency product. Spot payments are a binding obligation to buy/sell a specific amount of foreign exchange, for fast delivery. Spot transactions are bought at the prevailing live Spot rate for delivery within two business days.
Forward Exchange Contracts (FECs)
Key benefit: certainty
An FEC allows the ability to “lock in” an exchange rate now for a specific date in the future.
A forward rate is based on an industry standard calculation of the current Spot Rate, time to maturity and the interest rate differential between the two currencies. FECs allow you to forecast costs or profits with greater certainty without the need to pre-purchase currency and deplete your cash flow. A deposit may be required, however full payment of the contract amount is not necessary until the maturity date.
Market Orders
Key benefit: convenience.
Take advantage of market movement and place an order for the rate you want to achieve. Your Relationship Manager will provide you with data that can assist you when selecting your target rate.
Our systems track markets 24 hours a day and if your target rate is achievable, we will execute the transaction automatically. Simply tell us the amount, currency and desired target rate. We can run market orders for both Spot and FEC contracts.
Markets Orders offer an easy way to participate in a 24 hour market and capitalise on favourable movements, if they occur.
Currency Options
Key benefit: versatility
FX Corp offer a wide range of sophisticated hedging tools specifically designed for wholesale clients only. Our Currency Options Desk tailor structures to suit specific commercial requirements and provide clients the ability to pick and choose the benefits they need whilst forgoing others that aren’t as pressing.
Have more questions? Need more alternatives than what you’re using in your current portfolio? Speak with our team to create a risk management plan that suits your business goals, market view and risk profile.