Flexi FX Forward

Fix an FX rate now, trade in the future

In a flexible FX forward, the client has an obligation to sell one currency and buy another currency at a pre-agreed rate, and the fulfilment of the obligation can be done in parts (utilizations). In the case of a flexible FX forward, the client has an obligation to sell one currency and buy another currency by a certain future date at a pre-agreed rate with the possibility of partial performance for the term of the agreement.

Features of Flexi FX forward

Obligation for full performance to maturity

Possibility for partial executions of the transaction

Protection against adverse market movements

Example: The client enters into a flexible FX forward, with the obligation to sell EUR 1,000,000 and buy USD 1,190,000 by 30.11.2017 (maturity). The client makes 3 disbursements during the period: on 10.09 for EUR 200,000, on 01.10 for EUR 500,000 and on maturity (30.11) for the remaining EUR 300,000. The disbursements are made at the pre-agreed exchange rate for EUR / USD - 1.1900.