Booking a Forward Contract

Do you have a foreign exchange requirement in the next 12 months? Are you protected against potential losses caused by market movements?

Whether you need to make one-off or multiple payments, booking a Forward Contract means you can secure today’s rate for up to 12 months in advance.

It gives you the advantage of knowing exactly how much currency you will receive when you need to transfer your money later down the line so you have peace of mind knowing your rate will not alter during this period.

All you need to do is:

  • Book your currency exchange online or over the phone, selecting a settlement date up to 12 months in advance.
  • To secure your rate, we just require a refundable 10% deposit to be paid in either currency you will be exchanging.
  • We will send you an email to remind you before your final balance is due.
  • We will then send your currency to the bank account you have specified using the fastest payment method available.

Scenario – Forward Contract

A food and beverage importer imports US 150,000 of wine from the United States and the invoice is due for payment in 60 days.

The current exchange rate is 1.7405 US Dollars to the Pound requiring them to pay £86,182. The importer is concerned that the exchange rate may change in the next 60 days, costing them more money to buy the wine.

They choose the simple solution of logging into their FTT Global account and booking a Forward Contract.  This secures the rate of exchange for the next 60 days and all they have to do is pay a 10% deposit which is refundable on the settlement date.