Currencies 4 You have various different currency contracts and financial tools to help you obtain the most for your money. Your Personal Relationship Manager will be able to help identify the right type of contract for you, based on your specific requirements. Every one of our clients has different requirements and we understand this, hence why we work with you more closely to understand your time frame, budget and specific needs to help find the perfect solution for you.
Same Day Contract
If you need to make a payment urgently then a same day value contract is definitely the right contract for you, we can agree an exchange rate with you based on the live market price, and as soon as we receive your funds we will make payment to your destination all on the same day (sometimes can take a day or two depending on the time of day and destination country of payment).
Next Day Contract
If you are worried about the rate dropping, why not lock in the exchange rate today and we will give you until the close of business the next working day to make your payment to your account with us. This is an ideal way to get the rate secured and have an extra day to allow you to make payment when you have some free time.
Spot Value Contract
An example of this would be a client buying stock from an international supplier. On the day you agree to buy your goods you will know the total cost in the currency required, your costs, however, will not remain the same due to the currency markets moving every 2-3 seconds. Your costs will fluctuate with it.
In 2016 some currency pairs moved up to 25% and if you hadn’t locked in a forward contract you could have potentially been paying up to 25% more for your goods. This can be significantly detrimental to your bottom line.
One of the joys of a forward contract is that irrespective of the market fluctuation, once you have locked in an exchange rate, your price is guaranteed. If the market price dropped it will have no impact on your exchange rate, whatsoever. It allows you to know your total cost from the outset.
A market order is simply an order in the live market, whether it’s an exchange rate you are trying to target or an exchange rate you don’t want it to drop below.