Home FAQs Uncategorized Is a Forward Contract right for me?

Is a Forward Contract right for me?

You might consider a Forward Contract if you’re committed to making a payment for goods or services in the next few months – like paying suppliers or your mortgage for your property abroad. You need to be sure that the goods or services are definitely going to be delivered by the supplier because you can’t cancel a Forward Contract. You can also use a Forward Contract if you have an incoming payment, but you need to be certain that the payment will be made.

To continue to take advantage of exchange rate movements, some customers use a Forward Contract for only part of their liability as a way to partially hedge against volatility.