Managing risk with currency forward contracts
Protect against volatility with currency forward contracts
If you’re looking to purchase a holiday home abroad or have a family wedding to pay for, planning your budget in advance is essential. With a forward contract, you can target a favourable exchange rate in advance of a future date for your preferred currency pair. This allows you to take advantage of any fluctuations in the foreign exchange (FX) market and protect your trade against currency risk.
THE OPPORTUNITY
Currency forward contracts: a buy now, pay later solution
Protection against market volatility
Forward trades are one of the most effective currency hedging solutions for safeguarding against market volatility, allowing you to plan ahead and better manage your budget. By locking in an exchange rate for a future purchase date, you can mitigate the negative impact of any market downfalls until your settlement date.
Competitive exchange rates
Forward trades can be placed against the majority of freely tradable currencies around the world. We have the purchasing power to buy and sell currency at near interbank rates, combined with our lower overheads as a foreign exchange specialist. This allows us to offer our clients more competitive exchange rates, helping them to buy or sell their currency at a time best suited to them.
Better budget management
When you place a forward contract with Halo Financial, we exchange a specified currency pair on your behalf at a fixed exchange rate. This foreign exchange solution offers the flexibility to settle the currency exchange for up to 24 months in the future. With a Halo Financial forward contract, you can enjoy clarity over the potential profit of your currency exchange.
OUR APPROACH
Securing your favourable exchange rate with award-winning client service
With Halo Financial, the amount of currency required, exchange rate and settlement date are all agreed upon on the day of the deal. This counteracts any foreign exchange risk until the settlement date and protects against market volatility, providing peace of mind that your hard earned money is safe.
Foreign exchange solutions, tailored to you
Each Halo client receives a bespoke foreign exchange strategy, with currency hedging solutions customised to your FX goals. Whether you’re making payments towards a destination wedding, international education or overseas property maintenance. You may need to pay different amounts on fixed instalment dates, so our forward trades allow you to specify the amount you will need to pay each time and budget more effectively.
Protect your currency
You can secure your currency exchange with a 10% deposit on the date the trade is agreed. Your currency is then protected against moving exchange rates for the duration of your time frame, regardless of any foreign exchange market downturns, mitigating currency risk.
Stay informed of market volatility
Your dedicated currency specialist ensures you’re always in the know with the latest market updates and currency alerts. We deliver updates directly to your inbox, so you can save time monitoring the exchange rates knowing that we’ve got it covered.
WHAT TO EXPECT
Helping you manage currency risk and budget for big plans with ease
We understand how busy life gets, so we’ve developed a simple three-step process to start your foreign exchange journey.
- Your dedicated currency specialist takes the time to get to know you and your foreign exchange requirements
- We then design a bespoke foreign exchange strategy using your selected base currency and quote currency
- Your currency specialist continues to review and amend your strategy as needed, to ensure it meets your changing currency requirements.
FAQs
Here are the most frequently asked questions about online currency trading.
How do I register for a Halo account?
We’ve ensured that signing up for a Halo account is fast and simple. You can either register online in just a few minutes or over the phone on 020 4527 1943. Once you’ve registered, you can immediately benefit from our expert services and competitive exchange rates on your forward contracts and other international trades.
Is there any fee for a forward contract?
There is no transfer fee or fixed rate for all foreign exchange international payments over £5,000. For amounts lower than this, we offer competitive rates to cover the administration costs of sending your money anywhere in the world. We’re proud to offer our clients a great quality service, with no hidden costs. As a Halo Financial client, you can expect complete transparency without any set-up fees or commission on top of the price agreed with you.
What is currency risk?
Currency risk exists in all foreign exchanges between two currencies. It refers to the change in the price of one currency in relation to another due to market volatility and unfavourable movements in the exchange rate. At Halo Financial, we mitigate currency risk for our clients using expertly designed currency hedging strategies. These strategies take into account economic indicators of market downturns and the individual client needs to help our clients manage their foreign exchange with confidence.
Let’s talk
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