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Lock in Exchange Rates for Future Transactions
Safeguard your margins with tailored forward contracts.
Risk Management
This means you can conduct international transactions with the confidence that comes from knowing your exchange rate won't change, no matter how the market moves.
Secure your forward contract
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Our team is available from 8:30 am to 5 pm, Monday to Friday (excluding public holidays).
What is a Forward Contract?
A forward contract is a financial tool that allows your business to fix an exchange rate today for a currency transaction that will occur at a future date.
This means you can conduct international transactions with the confidence that comes from knowing your exchange rate won't change, no matter how the market moves.
With Dinheiro, you can set up forward contracts to handle payments for international purchases, sales, or investments.
These contracts can be fixed up to 24 months, providing long-term stability and helping your business navigate volatile currency markets with ease.
Why Opt for a Forward Contract?
✓ Confidence in Pricing
Forward contracts ensure pricing certainty, empowering confident planning and protection.
✓ Simplified Forecasting
It becomes easier to forecast cash flow and budget effectively.
✓ Reduced Financial Risks
Dinheiro's forward contracts simplify international dealings and shield you from exchange rate volatility.
✓ Certainty Over Costs
Locking in an exchange rate now provides clarity over your future costs and revenues.
The Cost of Not Hedging
If you decide against using hedging strategies like forward contracts, your business becomes susceptible to unfavorable currency movements.
Exchange rates can shift unexpectedly, potentially increasing the cost of imports or decreasing the profitability of exports.
Without a secured rate, these fluctuations can adversely affect your profit margins and overall financial health.
Navigating Currency Risk
Safeguarding Against Market Movements
Forward contracts protect you from unfavourable market changes but may require margin adjustments during significant fluctuations.
Aligning Risk Management With Business Goals
Forward contracts help you secure exchange rates, manage currency risk, and provide stability for future transactions.
Potential Trade-Offs With Market Gains
Forward contracts protect your margins, ensuring stability and preventing losses even during unpredictable marlet shifts.
Understanding Financial Commitments and Support
Forward contracts require a deposit of 3-10% and Dinheiro can assist with credit support to manage these commitments.
How to book forward contracts
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You can find out more about what you need, from hedging strategies to currencies involved and length and rate of contracts by calling our team on 020 3098 5525 (local call rates and charges apply).
We’ll clearly cover the below terms to ensure you’re comfortable with the conditions of the forward.
These terms include:
The currencies involved
The rate of the contract
Tenure (length of the contract
Determining whether you require a fixed, flexible, or window forward
Explaining deposit/initial margin requirements, in case a credit facility is needed
Understanding if you’ll be using this (forward bought) currency for buying or selling goods or services, or for direct investment
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You can easily book fixed forward contracts online and window and flexible forward contracts by calling 020 3098 5525 and speaking to one of our team (local call rates and charges apply).
For fixed forwards, if you request a rate further than a spot contract (trade date, plus two days), you’ll receive a pop-up on your account informing you that you’re about to book a fixed forward contract with WorldFirst and that a deposit may be required.
Once you click “Accept Rate & Book Transaction” you’ll enter a legal contract with us to buy or sell the currency you’ve selected.
For added transparency, you’ll also receive detailed information on how we calculate margin requests. This information is important in case your rate significantly moves during the tenure of your contract, thus requiring a margin call.
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