Forward Contracts
Buy or sell currency now, pay later.ÌýWhether you are looking to take advantage of current market conditions or just like to plan ahead,Ìýeliminate the risk of unfavorable currency market moves between now and the time you need to make yourÌýpaymentÌýwith forwardÌýcontracts.Ìý
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The Benefits
- SecureÌýtoday’s exchange rate, forÌýdeliveryÌýat a future dateÌý
- Free up cash flow, with only a small initial deposit requiredÌýÌý
- Protect profits from unfavorable market movesÌý
- Easier and more effective budgeting and planningÌý
Exchange rates move constantly. Forward contracts give your business the freedom and flexibility to take the unpredictability out of currency conversion and budget effectively to protect your profit margins from negative market movements.ÌýThis means no more worrying about currency market volatility. Regardless of which direction the market moves you will know the exact cost of the amount you need when you are ready to make a transfer.ÌýThe best part: you don’t have to pay until the currency is needed, keepingÌýthat cash free for other uses; in other words, planning and budgeting just got a little more stress-free.Ìý
How It Works
Set the amount of currency needed and settlement date,ÌýtypicallyÌýup to two years in the future, at the current exchange rate, plus forward points.Ìý All you pay at the time of booking is a small deposit, which is then applied to the balance of the forward contract when the forward is due on the settlement date.
Fixed-Date Forwards
If you find yourself with flexible payment terms or know you’ll need a certain amount of currency at a specific date in the future, then fixed-date forwards might be your ideal solution. Unlike spot transactions, fixed-date forwards allow you to buy or sell currency with delivery for one specific date in the future, out to two years.
Window Forwards
If you are unsure of the exact date you will need funds or expect to draw funds multiple times during the life of a contract, then window forwards might be the best solution for you. Similar to fixed-date forwards, window forwards allow you to buy or sell currency with delivery for a time in the future, out to two years. However, instead of one specific date, window forwards allow you to draw funds as often as you like within a set timeframe. This gives you complete payment flexibility to access your funds as they are needed without having to commit to a specific date. The funds can be drawn at any point in the window or until the window forward is due on the settlement date.
Want more?
Forwards are the most effective way of managingÌýforeign exchangeÌýrisk, giving you piece of mind over planning and budgeting your international payments.ÌýNeed help working out the best time to make the most of your money transfers? See how our specialist can help.
Optimistic Outlook for Antiques
An antiques dealer based in Georgia understood that the British pound (GBP) was poised to be strongly impacted by the results of the election.
In less than minutes, you can book your FX deal—tell us how much and where to send the funds in which currency. Get your competitive quote instantly, and then confirm your deal.Ìý Track your progress by setting up your personalized online account or work directly with your Account Manager.
Send us your funds via wire transfer, fax a check or we can set you up with an ACH direct debit.
Send us your funds via wire transfer, fax a check or we can set you up with an ACH direct debit.
Toral, Head of Revenue Operations
Toral, Head of Revenue Operations
For over 7 years in our DC office, Toral has managed revenue operations and data analysis to help Monex make informed and strategic business decisions. Get to know Toral behind the mask...
Meet Team СÒù¹÷Say hello to the new СÒù¹÷ App
Say hello to the new СÒù¹÷ App
Transact anywhere, anytime from your mobile device with the СÒù¹÷ App. Manage all your payments and FX products at your fingertips with end-to-end transaction tracking as well as instant quotes with the ability to buy in a few clicks.
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