Forward contracts
Protect your business margins against currency risk with our flexible forward contracts. When your business operates outside the eurozone, you are likely dealing with foreign currencies. Exchange rate fluctuations can change the value of an amount in euros, putting your profit margins under pressure.
What is it?
What is a forward contract?
A forward contract, also known as a 'forward', is a financial instrument used to hedge the exchange rate risks of a future transaction in a foreign currency.
Protection in advance
When you expect to receive or pay an amount in a foreign currency in a few weeks or months, you can enter into a currency forward contract to gain certainty about the exchange rate in advance.
Fixed-date forward contract
Do you know exactly when you need to pay or will receive foreign currency in the future? Then you can lock in the exchange rate for that transaction now. This is convenient for one-time transactions with a fixed term.
Flexible forward contract
Choose a flexible forward contract and enjoy full payment flexibility. You can lock in the exchange rate for a specific period and then exchange foreign currency at the locked-in rate at a time of your choosing.
5% initial deposit
For every forward contract we require a deposit of 5% of the transaction amount. After locking in the exchange rate, your rate is guaranteed for the agreed period.
In 3 steps
How does it work?
Contact us
Entering into a forward contract is simple and can be done by phone. You indicate the period for which you expect payments and the amount you want to hedge.
Receive forward rate
You will then receive a competitive flexible forward rate from us. If you agree to this rate, the transaction is confirmed.
Exchange rate locked in
After locking in the exchange rate, we require an initial deposit of 5%. All future payments are made at this exchange rate until the balance is used up.
The process
How are your payments executed?
When you expect a payment in foreign currency, you send us an email with the payment details, such as the amount you wish to transfer and to which beneficiary. This transaction is executed at the locked-in forward rate. We then pay the beneficiary at lightning speed. The balance on the forward contract is then reduced by the amount paid.
Protect your profit margin with forward contracts
Fortunately, you can easily and cost-effectively limit currency risks by using forward contracts.