Contracts

How can Excel Currencies protect me against foreign exchange risk?

At Excel Currencies managing foreign exchange risk and mitigating the risk of fluctuations in currency markets is our sole priority to help your business keep its costs under control.

If your business imports or exports, or has operations in different countries, Excel Currencies understands that monitoring the currency markets is vital. A simple variation in the currency markets can affect your business by thousands.

Excel Currencies provide you with your own dedicated personal currency broker, who is able to monitor the currency markets for you at any time of the day. Your personal broker is there to guide you as to the correct financial tools to use protecting you against volatile foreign exchange rate fluctuations.

Spot Contracts/ Stop Loss / Limit Orders:

Spot Contracts – You can buy currency immediately as a 'spot' purchase, so called because you are buying currency on the spot. Settlement for a purchase of this type is two working days and upon receipt of cleared funds a transfer can take place. A spot purchase would normally satisfy someone who has an immediate requirement for the currency and wants to exchange right away.

Stop Loss - A stop loss trade is one that is made in order to set a limit to the loss made by an adverse price movement. meaning that should your desired rate be achieved, either day or night, our automated system will purchase the currency for you.

Limit Order - A limit order trade is one that is made where you set a high price above the market price in anticipation of achieving that price at a later date. Our system will monitor the market 24/7 until the price is achieved.

Types of Forward contracts:

Forward Contract – This is an agreement initiated by you to either buy or sell a specific amount of foreign currency at a certain rate, on or prior to a certain date. By fixing the exchange rate, your business will be protected against any negative fluctuations on the markets potentially eroding the costs to your business. A forward contract simply allows you to buy at today’s rate on payments you need to make or receive in the future.

There are two types of forward contracts that we offer:

Open Forward Contracts – An open forward contract is a contract designed for clients who know that they have a payment to make before the maturity date. This provides the flexibility about what date you wish to use the currency.

Fixed Forward Contracts – A fixed forward contract is designed for clients who wish to specify one fixed maturity date, and can pay the full balance by this date.