Types of Contract

Spot Contract

The Spot Contract is the quickest, easiest and most popular way to buy and sell currency. You simply exchange one currency for another, whenever you need it. There is a natural two day settlement period on Spot contracts, however we can offer the flexibility to buy currency for same / next day delivery if required. As soon as your funds are cleared, we will forward the currency to the account of your choice.

Forward Contract

The Forward Contract can help protect businesses from market volatility and are useful for managing your currency exposure. You can fix the price now for a transaction that will take place up to two years in the future. You secure the Forward Contract with a deposit of 10% of the total value of your transaction (you'll need to pay this within two working days of agreeing the contract) and then pay the balance before the contract expires. This allows our clients to forecast future cash flow and lock in the exact amount of sterling (or other currency) to be paid in the future regardless of fluctuations which may occur in the meantime. Foremost offer both types of Forward contract (fixed term and with the option to draw down early if required). Once secured the agreed exchange rate will apply for the duration of the contract.

Limit and Stop Loss Orders

We offer our business clients the opportunity to authorise in advance the purchase or sale of foreign currency at pre-agreed levels thus eliminating the risk of losing an opportunity offered by the market which may be short lived.

With a Limit Order you specify the exchange rate you are hoping to achieve, a price that may not be currently available. Your currency will automatically be purchased if the market exceeds this level and you'll get the rate you wanted. This type of contract is particularly useful when the markets are moving in a positive direction for you.

A Stop Loss Order will instruct your broker to buy if the currency goes down to a pre-determined level. When combined with a Limit Order you can hold out for a better exchange rate and still protect yourself from a sudden fall in the market.