Secure your rate, book a Forward!

March 13, 2013 2:44 pm Published by

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

FTT Global enables you to take control of your foreign currency money transfers and plan ahead for your future currency needs. Think of it as a buy now, pay later kind of agreement where you can secure today’s exchange rate, pay a refundable 10% deposit in either currency you’re exchanging and settle the remaining balance when you need to complete your international payment.

Whether you need to make a one off payment or multiple bookings, you’ll have the advantage of knowing that once you have booked a Forward; your rate is locked in for up to 12 months ahead. This means you’ll know exactly the amount of currency you’ll get when you need to make your money transfer particularly if you’re a business, this will make forecasting a lot simpler!

An example of how booking a Forward Contract can benefit you

A food and beverage importer imports USD 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 book a Forward Contract with FTT Global and secure the exchange rate for the next 60 days – all they have to do is pay a 10% deposit which is refundable on the settlement date. By the time the importer settles the payment the market has moved and the exchange rate is now 1.6481 meaning that if he didn’t book the Forward, the cost of the wine would have been $91,012; costing him an extra £4,8630.00!

For more information on how booking a Forward Contract will benefit you, please contact us. Our Support Team is 24/7 by telephone and email to answer your queries.


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This post was written by Kayleigh Driscoll

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