Forward Contract for Predictable FX Rates
Lock in an exchange rate today for a future transaction. A forward contract helps your business plan with confidence by removing uncertainty from currency fluctuations.
What Is a Forward Contract?
It is a currency agreement that allows you to fix an exchange rate today for a payment you need to make or receive in the future. It’s a simple way to secure your FX costs in advance, helping you stay protected against sudden market movements.
Whether you're managing future invoices, budgets, or supplier payments, a forward contract on currency gives you cost certainty.
How to Apply a Forward Contract?
Hedging as a risk management strategy
Forward Contracts are useful when you know the amount and timing of a future foreign currency transaction. You can lock in a rate now to pay suppliers later, protect your profit margins, or plan for scheduled loan repayments. This service is often used by companies budgeting for large projects or recurring international commitments. It gives you more confidence in forecasting costs or income without worrying about market fluctuations.
With the support of an FX specialist, you can structure a contract that fits your timeline and payment goals.A forward contract allows you to agree a specific price in advance. This way, you will know the exact amount necessary to pay, and what amount in your chosen currency you will receive. If the exchange rate rises, this negative move will not affect you. However, this also means that your forward contract does not benefit from favorable market movements. In this instance, to take advantage of the preferential rate, you could execute a spot transaction.
See below how a forward contract locks in an exchange rate, and protects against movements in the currency markets:
Why Does it Matter for Your Business?
A forward contract helps bring consistency to your financial planning. By fixing rates in advance, you reduce the impact of currency swings on your budget and guarantee profit margins.
Strategic Advantage of a Foreign Exchange Forward Contract
Who Should Use a Forward Contract?
Understand when to use a Forward Contract — and when other FX strategies might make more sense.
Finance Directors
Looking to reduce currency exposure on large future transactions and manage cash flow with more confidence.
Exporters and Importers
Working with international contracts that need to settle payments at a known exchange rate to stay within margins.
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Procurement Managers
Responsible for planning overseas purchases in advance while locking in prices unaffected by market shifts.
Forward Contracts vs. Other Currency Tools
Understand when to use a Forward Contract — and when other FX strategies might make more sense.
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Lock In Your Rate Today
Protect your business from exchange rate swings and bring clarity to your international planning.
How to Set Up a Forward Contract
Work with us to lock in your exchange rate for a future transfer — it’s simple, guided, and secure.
Submit your business information and documents so we can get you verified and introduce you to a dedicated FX specialist.
Define the amount, currency pair, and date for your forward contract based on your future payment/project needs.
Once terms are agreed, your FX specialist will secure your preferred rate and confirm the contract.
On the agreed future date, your funds are exchanged at the locked-in rate, with no surprises.