Budget certainty
Price your goods knowing exactly what the currency will cost you — from the day you sign the supplier contract.
Hedging
Lock today's rate for future payments.
A forward contract fixes an exchange rate now for a payment you will make later. Whatever the market does in between, the cost of your imports stays exactly where you agreed it.
What is a forward contract?
A forward contract is an agreement to exchange one currency for another at a fixed rate, on a set date in the future. You agree the amount, the currency pair and the value date today — and the rate is locked the moment you book.
It is the simplest hedging tool there is. Importers use it to protect supplier invoices that fall due in the months ahead; exporters use it to protect the value of revenue they are yet to receive.
Forward deal EUR / USD · 3M
Locked today: 1 EUR = 1.1580 USD
Illustrative example: a $100,000 supplier invoice due in three months, booked at EUR/USD 1.1580 — the euro cost is known on day one. Rates shown are indicative only; the final rate applied to your transaction may differ.
Why hedge
Why businesses book forwards
Protection from market swings
If the rate moves against you before the invoice falls due, it doesn't matter: yours is already locked.
No premium
A forward costs nothing to enter. A security deposit may be required when booking, returned at settlement.
Easier cash-flow planning
Fix rates for the months ahead and take currency risk out of your forecasts entirely.
How it works
Four steps. One fixed rate.
01
Tell us what you need
The amount, the currency pair and the date the payment falls due.
02
Lock the rate
You receive a forward rate — the moment you confirm, it is fixed for your value date.
03
Carry on with business
The market can rise or fall in the meantime. Your rate doesn't move.
04
Settle on the value date
Fund the deal and pay your supplier at the rate you locked.
Good to know
- A forward is a firm commitment: the exchange happens at the agreed rate on the agreed date, even if the spot market ends up more favourable.
- A security deposit (margin) may be required to book a forward, depending on the amount and tenor.
Our team will help you judge whether a forward fits your exposure — with no obligation. Talk to us.
Open an account today.
No opening fees. No monthly subscription. A 100% paperless process.
Get Started →