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Types of forward contract: |
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- Time option forward contract
This is a forward contract that allows access to the funds
between two pre-determined dates eg. 01/04/00-31/08/00.This
is of particular benefit when, for example a car delivery
is not precisely known, and therefore funds may be needed
earlier.
It is important to remember that the last date is not flexible
and physical delivery of the currency can take place before
but no later than that date.
- Drawdown forward contract
This is similar to a time option forward contract, however,
if a portion of the funds are required during the life of
the contract then they may be drawn down against the said
contract at the original buy rate, thereby reducing the
final balance. This would particularly suit either a boat
or house purchase where large sums maybe needed to settle
stage payments.
Its structure also lends itself to corporate clients with
large capital payments as the minimum is circa. £75,000.
Draw down payments will incur a £20.00 fee, which
includes our standard £10.00 charge for Telegraphic
Transfers.
- Fixed term forward contract
A Fixed-Term Forward Contract gives you the ability to fix
a currency rate with a view to take physical delivery of
the said currency in the future. The rate is guaranteed
irrespective of market fluctuations for the duration of
the Contract.
A deposit is required on each Forward Contract and must
be received within two (2) working days of the contract
date. The balance of the contract must be settled no later
than the maturity date. We recommend that our clients settle
the outstanding balance on their contracts five (5) working
days prior to the contract matures.
Should the delivery of the currency not be required upon
maturity, the said currency can be held on account at no
additional charge or penalty.
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