Spots and Forwards

A simple FX Forward contract, determined on the basis of the spot rate and the interest rate differential between the two currencies involved, is an obligation to buy or sell a certain amount of foreign currency on a certain date in the future.

This allows a company to hedge against currency movements between the date of ordering goods and their delivery and carries little risk if the deal goes through smoothly.

These contracts can differ in detail:

• Vanilla FX Forward contracts
• Dynamic FX Forward contracts
• Non-deliverable Forward contracts

Our FX team has a strong risk advisory platform and on-the-ground local expertise in more than 47 countries providing a forward market-making capability for every freely traded currency.