This is the most common contract type and needs to be settled within 48 hours of agreeing the contract.

Foreign currency funds can either be transferred immediately or held on account for future use.

You need the currency immediately.

To take advantage of a beneficial rate and hold funds on account.

This is for the purchase or sale of a currency on a fixed future date. A small deposit (5% - 10%) is required when the contract is made with the remainder due before the completion of the contract.

A forward contract will guarantee an exchange rate for a future date, regardless of subsequent market fluctuations.

Forward rates are calculated using the prevailing spot rate at the time of booking and the interest rate differential between the currencies involved and vary depending on the length of the contract.

If you do not have all the funds currently available.

To guarantee a rate for a future date.

To take advantage of a favourable rate.

To protect against market fluctuations.

To benefit from the flexibility of draw-downs and rollovers.

This is for the purchase of currency that is required imminently, where the purchaser wants to wait to see whether the market moves in his or her favour, but needs to achieve a minimum rate if the market moves in the opposite direction.

The purchaser places a stop loss order at a given rate and even if the rate moves below this overnight, the purchaser will still be able to secure currency at that agreed rate.

You have an imminent requirement for currency.

You want to benefit from market fluctuations but also want to limit your risk to unfavourable market movements.

An order to purchase currency at a specified rate of exchange that is not currently available.

An order will be triggered automatically should the desired exchange rate be reached.

You do not need the currency immediately.

You have an ongoing or future currency requirement and want to secure a beneficial exchange rate.