A contract to exchange foreign currency that is due for settlement by the spot date
(within two business days after the trade date, i.e., T+2).
|A contract to buy or sell a certain amount of foreign currency to be settled at a specified rate within a specified period in the future (longer than for spot contract)
|A contract allowing the client to buy or sell a foreign currency, if wanted, at the client's preferred rate of exchange, within the option period.
|Exchange of most foreign currencies can be done quickly and conveniently.
|Eliminates exchange rate uncertainty on settlement date, allowing foreign currency costs or income to be calculated at the forward rate
|Client is exposed to currency market volatility, with a risk of loss.
|Client is obligated to the specified rate, which could represent the loss of an opportunity to maximize income or lower a cost, if the exchange rate has moved against the client's favor by the settlement date.
|Client is subject to an explicit and set fee, due upon contract signing.
|Client may choose one of three settlement date options:
|Client must specify exchange rate option details below:
|· Value today
|· Value tomorrow
|2. Exchange rate
|· Value Spot
|3. Exchange amount
|4. Contract period