020 7898 0500Overview
Forward Contracts
Forward contracts allow you to secure a fixed price for buying or selling currencies on a specific date in the future. The price you lock in is determined on the day you agree the amount and settlement date for the forward contract.
Forward contracts are particularly useful for businesses that have future payments or receipts in foreign currency because they allow you to protect your budget and profit margins. In this way, they can be an important part of a company’s hedging toolkit.
Types of Forward Contract available:
- Fixed Forwards: Exchange one currency for another on a fixed future date
- Open Forwards: Exchange one currency for another between the trade date and a date in the future
- Window Forwards: Exchange one currency for another between two dates in the future
- Non-Deliverable Forwards: Cash-settle the profit or loss upon maturity of a fixed forward
Our dedicated team of currency risk management experts are on hand to exchange your money into a variety of different currencies, enabling you to make instant international payments.
We are passionate about working closely with our clients to deliver a proactive, solution-led service. Our team will work with you to develop a bespoke strategy for managing risk.
We provide professional currency guidance on market movements that helps our clients minimise risk when making foreign currency exchanges.
Case Study
As strong as steel
Learn how we helped a steel manufacturer protect its budget through forward contracts.
Managing currency exposures is key in volatile commodity markets. Our team were able to implement a range of risk management strategies to mitigate this company’s exposures.
Protecting profit margins
Hedging strategies helped protect its budget
Managing risk
Forward contracts reduced its exposures
A blossoming relationship
We continue to work closely on complex projects
What makes us different
SmartHedge PRO
SmartHedge PRO is our currency management platform that makes tracking exposures simpler than ever. Developed and tested to address pressing challenges UK companies face, SmartHedge PRO offers automated solutions that allow business to spend less time pouring over spreadsheets and more time making the decisions that matter.
Complex requirements
Material price volatility
The cost of imported materials (aggregates, steel, glass, etc) can shift between the tender stage and the procurement phase, eroding your forecast margins.
Long-term Projects
Construction projects often span years. Without a strategy to hedge against long-term currency shifts, your initial budget becomes a moving target.
International sub-contractors
Managing payroll and payments for overseas specialist consultants and labor requires efficient, low-cost international payment rails.
Equipment Procurement
Large capital expenditure (CAPEX) on machinery from overseas markets requires precise timing to avoid overpaying due to sudden dips in exchange rates.
