Spot contracts are the most widely used currency booking process, whereby a client will book his currency transaction, based on where the market is trading at that time. Whether the transaction is booked online or over the phone with a relationship manager, Lowcostfx will work with the client to attain the best rate possible at that given moment. Although we are at the markets mercy. Spot transactions are normally completed or delivered with the clients beneficiary bank within 2 days.
Forward contracts typically, are used by companies that wish to work in a risk averse manor, working to a budgeted rate and market dependant clients can often outperform the market by securing a fixed rate for any period up to 12 months by contract. The downside being that should the market move higher, the client is obliged to deliver the fixed rates as booked. However, many see this system of securing transactions as low risk, as the client should be booking at least 70% of there exposure in this manor. Our specialists are more than able to walk you through this process.
Lowcost Fx are more than happy to share market opinion, in this context, instead of just settling for the best rate at that moment in time. We will take a price after discussed with the client and place this price in the market as a strike price. Generally these orders are worked overnight as foreign exhange is one of the most liquid assets in the world. Therefore in many instances taking advantage of small currency fluctuatiuons, can be a more productive way of booking transactions and in the least, booking rates within the high of any range. These orders are considered Good Till Filled or Cancelled.
However you are booking transactions, please remember, that all transactions or orders are contractually binding and are considered for purpose of delivery, and not for speculative gain. Lowcost Fx Ltd operate on a trade and execution basis, meaning we do not take risk, we work on a low, to non risk basis.
Please contact us to understand more.
Lowcostfx Ltd is a company registered in England and Wales (Registered No. 11114632)
Payment and Foreign Exchange Services are provided by Ebury Partners UK Limited. Lowcostfx Ltd is partnered with Ebury Partners UK Limited as a Programme Manager.
Ebury Partners UK Ltd is authorised and regulated by the Financial Conduct Authority as an Electronic money institution. Registration Number: 900797.
Ebury Partners UK Limited is registered with the Information Commissioner's Office, with registration number: ZA345828.