Forward Trade is a trade you book today to pay 5% of the Selling Currency to lock the Buying Currency at today’s rate.
Why would one book a forward trade? / lock a rate?
1. When you have a set budget rate for Calcuating your Selling Currency/Buying Currency rate;
2. When you know a set amount of Money (Buying Currency) in the future date you need (to pay);
3. When you have a monthly or quarterly or yearly financial plan where you have set a reference FX rate that you want to lock in.
Step by Step Instruction:
(1) Under “Convert”, after you have selected the Selling Currency and the Buying Currency, Sell Amount or Buy Amount, click “Select a Date“:
(2) Unlike Booking a Normal Trade, you don’t make changes to the calendar, instead, you choose a Future Date on the calendar:
(3) You will then be quoted the Future Date Rate and the Deposit you need to pay Today. What you need to pay on Future Date the is the Selling Amount (95%) – Deposit (5%).
