We have the technology and products to effectively and efficiently deliver your currency solution. Whether it’s a straight swap of funds for currency or fixing a rate of exchange for a specific date, we’ve got you covered.
As we know every client is different, by conducting an FX health check we can highlight risk and tailor a strategy to you.
By taking the time to understand your business, we forge long term business relationships with the core focus of quality risk management, hence why our free consultation is of such critical importance.
The main objective of running the health check Is to diminish your risk and exposure at every level, fiercely protecting your bottom line, whilst looking at opportunities to enhance your financial position.
A Spot Contract is a straight swap of funds for currency. It is payable within 2 days or sooner depending on what was mutually agreed.
Out of all our products, a spot transaction is certainly the most commonly used along with being the fastest and simplest. Predominantly used by our clients when looking to make a same day payment; spot transactions can be booked over the phone or via the online platform. We offer you a live rate at your agreed margin form interbank which only you then decide on whether to accept or not, this can be booked on a same day, next day or spot basis (2 days to settlement). Funds are then released using faster payments guaranteeing your funds arrive same day when international banking times are met.
Using solely spot contracts without considering the use of out other products can be an extremely high-risk strategy depending on how your business is exposed to FX. Given how volatile the currency markets can be from one day to the next, it is important to think about how market fluctuations could be highly detrimental to a company’s bottom line. If like many business you get 30-90 day terms with your suppliers you could and should be taking advantage of other currency products to protect against currency movements out of your favour and protecting your bottom line in the process. Forward contracts and market orders are typically the best option when considering protection and targeting specific rates.
Lock in today’s exchange rate for the next 24 months, and avoid the risk of exchange rates affecting you.
In recent years with huge uncertainty due to political pressures, macro and microeconomics forward contracts have never played such a big part in your business planning and protection. When market fluctuations is a concern for a company’s profit margins and internal budgeting; forward contracts can be used to keep your pricing competitive within your market place. The contracts can be used for securing a price weather buying or selling currency for delivery anywhere up to 2 years in advance. Simply tell us how much volume you would like to lock in on today’s rate and if you are happy with the price we can execute the transaction securing a fixed price giving you peace of mind that currency fluctuations will no longer impact your margins. We have a number of hedging tools and strategy we can help implement dependent on you, your risk appetite and your requirement.
As we know every client’s needs are unique and bespoke, below you will find a number of different scenarios where we would recommend considering implementing a forward contract. Your dedicated dealer will take time in your FX health check to discuss a strategy that fits your timescale, current market conditions and future economic uncertainty.
Target a specific rate 24/7 higher than the current market rate.
Depending on your budget rate you may require to achieve a specific rate higher than where the market is currently trading. To achieve your goals and hit the levels you require to breakeven or even better make profit a limit order is the perfect tool when targeting a specific exchange rate. Once your targeted level is met your currency will get bought automictically. Once purchased you can either settle the trade and have the currency paid out immediately, alternatively we can roll this transaction into a forward contract. We will work with you using technical market analysis to target exchange rates that are achievable by studying support and resistance levels on your behalf. The beauty of this product is once the market order is placed it stays live 24/7. So if your desired rate hits overnight you are still able to take advantage of the market movement.
Set a worst case scenario exchange rate to protect your downside risk.
A stop loss works in the same way as a limit order; but instead of specifying a target rate at which you want to purchase currency, you simply specify the worst case scenario you are willing to exchange at offering you a level of risk you feel comfortable with. With markets being more unpredictable than ever, this product ensures that if the markets do turn in a negative fashion, you will have a peace of mind and again your margins are protected. Clients can optimise both products at the same time.
It is worth taking note that limit orders and stop loss orders can be implemented in unison as part a business’s currency risk management strategy. By putting both in place you are able to try and achieve a favourable exchange rate (limit order), but at the same time protecting yourself against unfavourable market moves (stop loss order). It is important to know that if both a stop loss and a market order are worked together if one fills the other is automatically cancelled.