Forward contract

Forward contract

Lock in an exchange rate for your future payments

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What is a currency forward contract?

A forward contract (also known as a currency forward or deliverable forward) allows you to fix a current exchange rate for a future overseas payment. This currency forward may require a deposit, however can be used to secure an exchange rate for up to two years. This means you’ll receive the same exchange rate for your payment during this time regardless of any upturns or downturns in the market.

 

What are the benefits of a forward contract?

If you wish to be certain of the cost of your international business payment or be able to plan ahead, then a forward contract primarily provides that reassurance and certainty.

As a business, there may regularly be large invoices to pay or orders of goods to make. A foreign exchange forward contract can be a great way to mitigate currency risk if you’re looking to maintain a tight budget or protect your profit margins. Exchange rates can fluctuate significantly over a relatively short period of time, however a forward contract allows you to devise a clear budget plan and be certain that any required payments to overseas suppliers and partners are made on time.

If you’re placing orders in advance and are clear on the cost, you can agree a deliverable forward for that amount and avoid any pressure on planned or advertised prices. This works both ways, however, as the contract also ensures you receive the same agreed exchange rate even if the rate moves in your favour by the time it comes to settlement.  

 

How can I agree a currency forward with moneycorp?

As with our range of corporate FX solutions, you can agree a currency forward and lock in an exchange rate with your account manager via phone. They will be able to talk you through the process and agree an amount and duration for your deliverable FX, as well as answer any questions or queries you may have.

What else we can offer

120+ currencies available

120+ currencies available

24/7 access

24/7 access

The ability to set up regular payments and target rates

The ability to set up regular payments and target rates

Our foreign exchange solutions for your business

Our foreign exchange solutions for your business

To find out more about our foreign exchange and global payment solutions for businesses, you can view our brochure.

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Watch live FX rates change in our Currency Zone

Watch live FX rates change in our Currency Zone