Forward Contract Trading

How much would you like to transfer £

International Foreign Exchange

International Foreign Exchange

Minimum Transfer
Max Transfer Fee
Margin Rate
Rate Per Single Unit
100000 GBP
gets you
FCA Regulated
£5000
0
0.8%
1.116
111,559.33 EUR
FCA Regulated

Natwest

Natwest

Minimum Transfer
Max Transfer Fee
Margin Rate
Rate Per Single Unit
100000 GBP
gets you
FCA Regulated
£100
20
5%
1.068
106,836.05 EUR
FCA Regulated

Barclays

Barclays

Minimum Transfer
Max Transfer Fee
Margin Rate
Rate Per Single Unit
100000 GBP
gets you
FCA Regulated
£5000
15
4.9%
1.069
106,948.51 EUR
FCA Regulated


Quick Quote

Santander

Santander

Minimum Transfer
Max Transfer Fee
Margin Rate
Rate Per Single Unit
100000 GBP
gets you
FCA Regulated
£100
19
5%
1.068
106,836.05 EUR
FCA Regulated


Quick Quote

Forward currency trading

Forward currency trading is essential when hedging risk available in the market. The risk in the market is mainly due to the fluctuating rates of dollars requiring the investors to use forward contract to manage the currency risk. Forward contracts are important for investors as they are able to predetermine the price of an asset in order to deal with price changes resulting from currency fluctuations. Risk management is essential in ensuring that an investor is able to acquire a continuous growth in the value of money invested. Forward currency trading work for traders who operate internationally where two or more currencies are involved in the trade. Therefore it is important to engage in forwarding contracts where future sale prices are predetermined to minimize loss due to currency fluctuations.

Currency Exchange Forward Contract Trading?
The currency fluctuations are affected by the money market in the nation and global financial performance. Forward currency trading considers the spot price which is the price of the currency at the moment, domestic interest rate, foreign currency interest rate and the period of the contract. This improves the certainty of a trader due to the consideration of the fluctuation rates of the domestic and foreign currency at the period of the contract. The exchange rate and delivery period are mainly considered in developing an effective forward contract that protects the international traders. The forward currency contracts are used by importers and exporters to reduce exploitation due to the continuous change of different currencies in the global financial market.

Foreign Exchange Forward Contract Trading?
The investors, importers and exporters enter into the contract stating that they will provide an asset at a particular price at a future date. Forward contracts are used for currency speculations for the rate of domestic currency and foreign currency is used to come up with the future price of a commodity. The contract has attributes of quality delivery to the consumer at a specific future price considering the fluctuating exchange rates in the market. These contracts are able to provide an attractive exchange rate in the market considering that people are able to speculate different currencies based on the performance of the currency in the money market.

Money Transfers Forward Contract Trading?
Forward currency contracts have legal bidding thus the parties cannot break the contract regardless of the changes in the currency involved in the trade. This makes it possible to ensure that there is a continuous growth of a business through currency risk management. Banks encourage customers to use forward currency trading when importing, exporting or investing on an asset that will be affected by currency fluctuations in the international trade. Importers enter into forward contracts at a lower price expecting the price of the commodity to rise at delivery date while exporters prefer the higher price at the delivery date to match the market price at the time. The quantity and quality of the commodity are stated when engaging in the forward contract to minimize the uncertainty due to exchange rate fluctuations. The pricing considers domestic and foreign currency rates are used to come up with an effective forward currency trading for commodities.

Newsletter Signup to CMT

Sign up to our foreign exchange newsletter to receive news updates directly by email

Compare Money Transfer will not Share your details!

Bank Exchange Rates Comparison

High St Bank Exchange Rate

All Rights Reserved: Copyright 2006 - 2018 Compare Money Transfer Limited offering FCA Regulated Suppliers - 34 New House, 67-68 Hatton Garden, London, EC1N 8JY. +44 (0) 843 357 4882