Foreign exchange pairs like Sterling and Dollar are changing every second of every day. Whilst it may be fun to watch for market-makers and forex traders, it's less fun if you just want to know what your final cost of making a payment is.
Protect yourself from the rough seas of foreign exchange with a forward contract to commit to buying a set amount of currency at a set price. We'll supply it, no matter how far the rate's moved by then, so you know you’re always going to get a great rate. Second, you may want to "hedge" your risk by setting strict upper and lower limits on the range you'll purchase a currency in, keeping you firmly in control of your funds.
Many circumstances require a combination of these tools, but your dedicated account manager will be able to advise on the best approach according to your circumstances.
The benefits of a forward contract are threefold:
- You'll secure a rate for the future - even if the rate worsens, you'll still receive the same price.
- You'll know your price ahead of time so you can have your accounts in order and rest assured that the correct amount of money is going where it's supposed to.
- It's done and dusted - you don't have to think about foreign exchange for the duration of your forward contract. You could say we sell peace of mind.
Posted in Personal Resources on Jun 20 2017