We will help identify, evaluate and mitigate the day-to-day currency risks you face, while giving you the tools to take advantage of the associated opportunities.
How we can help you
A limit order provides an upside price target. You set a price target above where the market is currently trading; when the market hits your price, your order is automatically filled.
A stop-loss order does exactly that – it stops loss. It allows you to set a "worst case " price to trade at below the current market level. Your order will be filled if the market drops to (or beyond) your protective price.
An OCO order ("One Cancels the Other ") allows you to set an upper and lower price range. The moment that your upper or lower price target is hit, your order will be filled at that price and the other price target is immediately cancelled. Market orders can be used to trigger either a spot order or a forward contract.
A currency forward contract is a non-standardised contract set up between two parties to buy or to sell a currency at a specified future time, at a price agreed upon at the time of contract initiation.
Futures currency hedging
Currency hedging involves the purchasing of a futures contract to minimize the potential currency risk an individual or business may face. This is done by entering a fixed agreement using local exchanges and thus “fixing” the price of a currency at that point in time.
How do forward contracts work?
Determine the future date you would like the currency delivered on. *
Sign the forward contract and pay over the required deposit.
Once the deposit has been received we can secure the exchange rate and book the currency.**
On date of settlement, the balance must be settled. The currency will be transferred at the agreed forward contract rate.
* This needs to be exact as booking will take place on the live market.
** Deposits needs to be paid in order to cover any risk associated with the currency pair. The deposit is usually between 5-10%.
Options offer protection for you and your business against exchange rate movement
Gain from upside foreign exchange movement while protecting against any downside risk.
How does a currency option work?
- The buyer decides which currency he/she would like to exchange for another as well as which date this conversion needs to take place.
- The buyer then decides what exchange rate he/she is willing to accept.
- The price for the contract, called the “premium”, is then paid to the seller to purchase the contract.
- On the day of conversion:
- If the exchange rate is worse than the agreed upon rate, the buyer will choose to exercise the option at the better, agreed upon exchange rate.
- If the exchange rate is more favourable than the agreed upon rate, the buyer will simply choose to ignore the contract and purchase currency at the better rate on the day.
How to get started
Create your free account here.
If you're a new client, you’ll need to provide us with a copy of your passport and proof of address to activate your account.
You’ll receive a call from a risk and hedging specialist who will walk you through the options platform.