Forward Foreign Exchange
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Forward Foreign Exchange Cover

Make a payment at a future set date.

When you want to lock in an exchange rate now for delivery sometime in the future you can use forward exchange contracts. A forward exchange contract has a settlement date that is more than 2 business days after the trade date.

With Forward orders you can protect yourself against fluctuating exchange rates by locking in a rate now and removing future potential risk due to adverse exchange movements from your transaction. Forward orders eliminate risk from potential volatility of exchange rates and also takes away all uncertainty in relation to your exchange of future receipts/payments.

You can’t predict the future but you can eliminate any future risk of volatility of foreign exchange rates By hedging you would theoretically have gained if at the time of settlement the actual rate of exchange is worse than when you took out your initial forward cover hedge: or alternatively, you have lost an opportunity if the exchange rate at the time of settlement is better than when you took out your forward cover or hedge. Many people and businesses prefer the level of certainty that hedging delivers. Forward orders take away the worry about the impact on your profitability by removing the need to speculate as to what the exchange rate may be at some later date.

The difference between the rate today and the rate some time forward is NOT a reflection of future anticipated market movement but rather the higher or lower rate reflects the interest rate differentials between your two currencies for the forward term of your contract.

In most circumstances a small (up to 5%) deposit instalment is required to cover any potential adverse movement in the exchange rate over the period of your Forward Exchange cover.

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WITH AXISFOREX YOU CAN
Make or receive a foreign payment now
Make a payment at a future set date
Make a payment when a set exchange rate is met
Receive a payment; you choose when to convert

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* AxisForex reserves the right to charge a nominal transfer fee
for amounts less than A$10,000 equivalent.

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