Exchange4free offer our corporate clients the following contract types:
Spot trade settlement is 2 business days ahead of the current trade date. These contracts are used for immediate delivery of foreign exchange. Payment will be effected in 2 days time to settle the trade and pay for the currency being bought or sold.
A Forward trade is a trade that has a settlement date at some point in the future however the exchange rate is based on the current exchange rate in the market. Clients are able to use forward exchange rates to hedge their future foreign exchange exposures and take advantage of favourable movements in the exchange rate.
Forward Exchange Contracts (FEC’s) enable clients to fix an exchange rate now based on current market rates for delivery at a future date. We are able to offer clients FEC’s out to 12 months ahead of the current date. This rate is fixed and is not affected by future movements in the underlying exchange rate.
Please note that we will require margin to be posted on all Forward Exchange Contracts.
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