Plain FX Forward
Ensure predictability during adverse
movements in the FX market
In a plain FX forward, the client has the obligation to sell one currency and buy another currency on a certain future date at a pre-agreed rate.
Features of Plain FX forward
Obligation of the client to deliver the agreed amount in the respective currency at maturity.
Complete protection against adverse market movements.
The client does not have the opportunity to take advantage of favorable market movements
Example: The client execute a plain FX forward, with the obligation to sell EUR 1,000,000 and buy USD 1,190,000 on 30.11.2017 (maturity). At maturity, the transaction is performed at the pre-agreed rate - 1.1900.
Target market of the product
The plain FX forward is a financial instrument, which the Bank manufactures and distributes as a product. The table below sets out the criteria for determining for which client profile the product is compatible with or not.
Type of clients
all types of clients: retail, professional and eligible counterparties
Clients’ knowledge and experience
- the movement and the possible expectations regarding the hedged reference values;
- lost profits or realized losses related to a negative change in reference values;
- hedging cash flows by entering a FX forward in relation to future receipts or payments on liabilities;
- the process of permanent collateral maintenance
does not meet the indicated knowledge and experience requirements
Clients’ financial situation with a focus on the ability to bear losses
ability to bear a negative result due to FX rate change within the term of the instrument and its maturity
Clients’ risk tolerance and compatibility of the risk
low-risk profile, due to the ultimate objective to fix the FX rate to the expected receipts/payments
inclined to bear the risks of negative deviations of the reference values
Clients’ objectives and needs
hedging adverse FX rate fluctuations or speculating
Treasury Sales Department
Deyan Mankovski – Head of the Treasury Sales Department – 02 80 10 862
Kalina Mays – Head of FX Unit, Treasury Sales Department – 02 97 66 233
Milena Lukanova – Senior Dealer, Treasury Sales Department – 02 97 66 232
Oktay Hasanov – Senior Dealer, Treasury Sales Department – 02 97 66 236
Hristo Arnaudov – Dealer, Treasury Sales Department – 02 93 91 364
Velichko Dimov – Dealer, Treasury Sales Department – 02 93 91 126
Kalina Yankova - Dealer, Treasury Sales Department – 02 93 91 133
Hristo Sugarev – Head of Asset Management Unit, Treasury Sales Department – 02 93 91 133
Ivelin Ivanov – Senior Dealer, Treasury Sales Department – 02 93 91 365
Martin Georgiev – Dealer, Treasury Sales Department – 02 97 66 234
Product Description FX Forward
Key Information Document FX Forward
Information on Costs FX SWAP