An FX Forward allows you to fix a future exchange rate to manage a cash flow or payment / receipt now.

If you know you will need or will receive an amount of currency on a future date, then an FX Forward gives you certainty on the exchange rate for that transaction ahead of time. On the date you’ve selected, the currency will be exchanged at the rate you have accepted in advance.

Note: If the actual exchange rate is more favourable to you on the settlement date, then you will still be obliged to transact at the rate agreed in the FX Forward. Cancelling the contract can incur break costs which may be substantial.

A Flexible Forward (or Time Option) is like an FX Forward but it gives you more flexibility on the timing of the exchange.

If you know you will need or receive an amount of currency in a future window of time, for example a 3-month period, then you can fix an exchange rate for that period. You can execute your transaction at any date in that period at the rate you have accepted in advance.

Alternatively, you may need access to an amount of currency over a window of time. A Time Option will allow you to draw down from the total amount in smaller amounts throughout the window at the pre-agreed rate.

Note: The total amount of the Time Option will need to be exchanged before the end of the window otherwise the remaining balance will be exchanged on the final day of the window. If the actual exchange rate is more favourable to you on the settlement date, then you will still be obliged to transact at the rate agreed in the contract. Cancelling the contract can incur break costs which may be substantial.

FX Orders can automatically convert currency for you if the exchange rate reaches the level you have selected.

If you have a target exchange rate in mind then you can submit an order and we will automatically execute the transaction on your behalf if that level is reached. The order can be cancelled at any time (prior to execution) by you.

You can also submit a call order which will trigger a call from a specialist if your target rate is met so you can discuss whether you want to make the transaction.

Note: This is not available in all markets and execution will be done on a best effort basis. Where margin is applied, you will be made aware of the required market FX rate to fill the order as well as the all-in rate when the order is agreed.

An FX Swap can be used to adjust the timing of a transaction by switching cash flows between different currencies.

A swap is a binding agreement to buy or sell a certain amount of foreign currency at a pre-agreed rate of exchange (the near leg) and then sell or buy back a pre-agreed amount of foreign currency at a pre-agreed rate of exchange on a settlement date in the future (the far leg).

If you have entered into an FX Forward and the timing of your expected cash flow has changed, you can use a Swap to switch the delivery date nearer or further into the future. This will be dealt at the prevailing rates at the time of the Swap transaction.