• Forward Currency Contracts
A forward contract is undertaken when you fix the exchange rate now for a specific date from one to 24 months in the future. As an example, your final payment for a home abroad may be the equivalent of £100,000. You could seal that exchange rate today with a small deposit, and pay for the bulk of that transaction at the completion of the forward contract. To guarantee the exchange rate, private clients will have to pay for at least 10% of the value straight away (a margin deposit) and the balance on or before the maturity of the contract.
• Time-Option Forward Contracts
You may also reserve a time-option forward contract. This contract allows greater flexibility in paying. For example, a property developer may give you a date of February 2007 as an approximate completion date but may tell you it could take a bit longer. Your dealer may recommend that you set a date for your forward contract of May 2007 and you are free to settle that contract anytime before the maturity date with no penalty.
We offer a way for you to buy your money at today’s rates, with 10% deposit, and pay the rest later.