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Fix an FX rate now, trade in the future
Product features
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.
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.
Target market of the product
The Flexi 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.
| Positive | Negative | |
| 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 Flexi 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 and/or on the date of partial or full take-up | - |
| 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 | - |
Contact dealers:
Deyan Mankovski – Head of the Treasury Sales Department– 02 80 10 862
Kalina Mays – Head of FX Department, Treasury Sales Department – 02 97 66 233
Milena Lukanova – Senior Dealer, Treasury Sales Department – 02 97 66 232
Hristo Arnaudov – Dealer, Treasury Sales Department – 02 93 91 364
Velichko Dimov – Dealer, Treasury Sales Directorate Department – 02 93 91 126
Stoyan Georgiev – Senior Dealer, Treasury Sales Department – 02 93 91 130
Hristo Sugarev – Dealer, 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
