Forward Currency Contract
A forward currency contract is undertaken when you fix the exchange rate now, for completion of a currency deal at a specific date in the future, from 1 to 24 months in the future.
As an example, your final payment for a home abroad may be the equivalent of £100,000.
You could fix that currency exchange rate today with a small deposit, and pay for the bulk of that transaction at the completion of the forward currency contract. To guarantee the exchange rate, private clients will have to pay a 10% deposit, and the balance on or before the date when the Forward Currency Contract expires.
This type of deal is perfect for businesses who would like to order goods abroad, and fix the price at the rate today in case the exchange rate varies in the wrong direction and the goods then become more expensive.
You may also reserve a time-option forward contract. This currency contract allows greater flexibility in paying before the end of the contract date, and could save you a lot of money if the exchange rate drops before you need to send the money overseas.
By opting for a Forward Currency Contract at today’s rates, you are buying yourself comfort. You can place a 10% deposit down, having agreed a rate of exchange for your money to be exchanged for you at a fixed date ahead. Once you’ve done this, you can get on with other matters rather than constantly worry about whether you will have to pay more for your goods, or house, if the exchange rates are worse for you when you need to make the currency exchange.
Live currency exchange rates are shown in the table below. They are updated every 12 minutes and display the mid rate between the buy and sell rates. If you would like a quote for the best foreign currency exchange rates today when buying a time option forward currency contract, please contact us. Global Currency Exchange Network: No commission and No transfer fees.
Is it safe?: Security & regulations information. Make Transfers: OPEN A CURRENCY EXCHANGE ACCOUNT HERE
Currencies - Cross Rates
| GBP | EUR | USD | AUD | AED | SEK | |
|---|---|---|---|---|---|---|
| GBP | 1 | 1.1597 | 1.56125 | 1.58516 | 5.74109 | 10.66881 |
| EUR | 0.86229 | 1 | 1.34626 | 1.36687 | 4.9505 | 9.19963 |
| USD | 0.64051 | 0.7428 | 1 | 1.01531 | 3.67723 | 6.83349 |
| AUD | 0.63085 | 0.7316 | 0.98492 | 1 | 3.62178 | 6.73045 |
| AED | 0.17418 | 0.202 | 0.27194 | 0.27611 | 1 | 1.85833 |
| SEK | 0.09373 | 0.1087 | 0.14634 | 0.14858 | 0.53812 | 1 |
| Other Currencies |
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