B2B, Supplier, Stationary, Office Supplies
30.08.2023
Forward Contracts - Protect profits from currency fluctuation
Caxton Payments
Payment Solution
A Forward Contract is one of the least complex, and most common ways to help protect profits from currency fluctuation. Simply, a forward contract is similar to a standard currency trade except the settlement date is in the future. You can lock in a rate for up to 12 months to provide you with certainty and protection from adverse currency changes. Their advantage is that they provide you with a predetermined rate of exchange, which means you know exactly how much money you’re dealing with in the future.
Understanding your risk appetite will allow us to know what solutions we will use to align to your business objectives. One of our simplest and most common products is the Forward Contract.
If you book a Forward Exchange Contract and the spot market ends up moving in your favour, you cannot participate in the more favourable spot market. You are locked in for your fixed amount, at the fixed rate, for the fixed date.
Benefits:
- Protect your profits from any negative foreign exchange movements
- Budget and forecast with confidence, thanks to our range of hedging solutions
- Stabilise your cashflow and get visibility into future exposures
- Secure payment certainty in volatile markets
Senior Business Development Executive at Caxton. Specialising in International Payments, Foreign Exchange, and API Integration.
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