Spot deals
A brand and marketing company operating in the UK wins a French-based contract. Their costs are in GBP as their offices and staff are charged in that currency, but their French client wants to pay in EUR.
They reach out to their dedicated Forward FX account manager to sell the EUR into GBP, which we do at a competitive rate. We provide them with a EUR account for the client to pay and deliver the GBP the same day to their UK bank account, with no payment fees
Forwards
As the relationship grows with the French client they win a multi-year contract and they realise that whilst the EUR revenues are staying the same the amount of GBP they are receiving each month is changing depending on the prevailing rate at each spot trade. The market volatility is making forecasting and budgeting difficult and means that, in reality, their costs are moving around when their revenues are staying the same.
Their dedicated account manager at Forward FX works with them to get an idea of the expected EUR revenue over the next 12 months and book a series of forward contracts to ensure that they always sell EUR and buy GBP at the same, predetermined, rate each month. Making the business easier to manage and allowing the farmer to focus on other more important parts of developing the business. These tools are free to use but do carry a credit requirement.
Market order
After noticing the large volatility in the EURGBP market the finance team at the firm decided to hedge on 70% of their expected currency exposure with Forward FX and leave the rest to the spot market. Using market orders, we place target rates with our banking partners so that when those levels are reached, even for a few seconds in the middle of the night, a spot trade is automatically booked. These tools ensure the market is working for our clients around the clock. These products can target positive moves in the market or protect you from moves against you.
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