Find the right tool for your business
There are a range of tools available, such as forward contracts, market options, future payments and option contracts, to help you protect your profit margins and smooth out cash flow. Learn more about each of these options to develop a right mix of risk management strategy tailor-made for your business needs.
Forwards Contracts
Certainty in volatile markets
Forward Contracts allow you to lock in an FX rate for a future date up to a year in advance, so you can secure margins even if the market moves. This way, you know in advance exactly what exchange rate will be applied to your transaction.
It is important to keep in mind that when you book a Forward Contract you are obligated to exchange funds at maturity, regardless of what the available spot rate is at that time.
Market Orders
Deal when the time is right
Help secure a target exchange rate by taking advantage of our 24-hour market monitoring facility.
We watch the markets on your behalf, even while you’re sleeping, and notify you if your target rate is reached. We can even process your order for you automatically if it does.
Future Payments
Lock in the Spot rate
If the market has moved in your favour, but you’re not due to pay for weeks or even months, Future Payments let you lock-in the current exchange rate up to 90 days in advance.
Your bottom line is protected, your foreign funds are ready when you need them, and there’s zero upfront cost.
Option Contracts
Protect and participate
Option Contracts provide protection from adverse market developments while also giving you the opportunity to participate in favourable moves. The drawback of an Option is that you typically must agree to a protection rate that is less favourable than the current market forward rate, in exchange for the potential participation you might achieve.
Disadvantages and Risks of Hedging Strategies
Hedging products are derivative financial instruments which involve risks due to FX market volatility. This can be disadvantageous and pose risks. If uncertainties concerning your risk management remain, we advise to not enter into contracts with Financial Instruments.