This is ideal if you have to agree pricing well in advance of delivery or you know that you would like to be receiving next year's income at today's exchange rate!

A forward contract is very similar to a same-day or spot contract. However, there are two additional considerations:

  1. How long do you wish to fix the rate for? E.g. when do you want to make or receive a currency payment?
  2. A refundable security deposit is normally required.

The actual price we quote you is based on the current exchange rate, and is adjusted slightly for the length of forward contract depending on the interest rate differentials between the two currencies involved.

Taking a step back, Currency UK can take a view of your total yearly foreign exchange exposure and advise you on the optimal hedging strategy for your exact set of circumstances. For example, you may wish to hedge a certain percentage of your yearly forecast turnover and allow room for fluctuation.