Forward contract
Secure your profit from exchange rate fluctuations
Protect your profits and plan with certainty–even when markets move. That’s the power of a forward contract.
What's a forward contract ?
A forward contract lets you lock in an exchange rate for up to two years, so you know exactly what you’ll pay, no matter how much currencies swing. You only need a small deposit upfront to plan ahead with confidence.
What's a forward contract ?
What's a
forward contract ?
A forward contract lets you lock in an exchange rate for up to two years, so you know exactly what you’ll pay, no matter how much currencies swing. You only need a small deposit upfront to plan ahead with confidence.
Why choose forward contract?
Protect your profits
Price with confidence and forecast more accurately with locked-in rates.
No pre-funding needed
Gain greater control over your financial planning without tying up capital.
Flexible settlement options
Flexible Forward
Fix Forward
Window Forward
What happens if I don't hedge?
If you don’t lock in a rate, currency swings could affect your bottom line, driving up costs or forcing you to raise prices. Even if rates don’t move dramatically, the lack of predictability can make it harder to manage budgets.
5 Things to know before booking a forward contract
5 Things to know before
booking a
forward contract
Purpose of forward contracts
You can lock in a forward contract exchange for an upcoming purchase in a foreign currency, but not for speculative purpose.
Margin call
Even if the market move against you, your rate is secured. But if rates shift significantly against you, you may be asked to top up your deposit (known as a margin call).
Deposit requirements
Most forward contracts require a 5–10% deposit, depending on the contract length and currency. In some cases, you may be eligible for a margin waiver – please speak to our team to learn more.
FX rates hedge
A forward contract locks in certainty. If market rates improve during your contract, you won’t gain under this forward contract, but you could still use a spot trade to take advantage of live rates.
Risk and strategy assessment
You must consider your risk appetite and evaluate your budget when pre-booking foreign currency. It may be worthwhile considering other strategies if you're unsure of your requirements.
How to book a forward contract
If it is your first time
If you’re new to forward contracts with WorldFirst, please contact us and we will provide the right forward strategy for you and your business.
If you're an existing client
You can easily book forward contracts online or by call/email to our team when you are not convenient to use our portal.
For full transparency
You can check your transaction details and how we calculate margins in portal anytime you want.
FAQs
If you’d like to secure the current FX rate but do not yet have sufficient balance in your account, you can book a flexible forward to lock a forward rate for an extended period of time and make the FX trade once your funds arrive.
ꔷ Go to “Foreign Exchange” (If you don’t have a Foreign Exchange tab on your interface, you can instead go to “Payments” > “Book FX trade”)
ꔷ Choose the currency you wish to sell and the currency you wish to buy
ꔷ You can enter the amount in the funding currency or the buy currency
ꔷ Next, select a settlement date
ꔷ Review your trade details and click “Confirm trade”
If you would like to make a payment immediately using the current FX rate, you can
ꔷ Go to “Payments” > “Send & withdraw”
ꔷ Select your payee and choose your buy and sell currencies
ꔷ By selecting “pay as soon as possible” and clicking confirm, you would have made a conversion and payout in one step
If you would like to lock in the current rate for a period of time and make payments with your locked rate, you can first book a currency forward. After the forward is booked, you can
ꔷ go to “Payments” > “Transaction management” > “FX forward”
ꔷ Locate your booked forward trade
ꔷ Click on “Add payment” under “Actions” on your trade, you can then make a payment with the forward rate
For detailed steps, please refer to the “How do I book a currency forward contract and fund later?” guide.
To see the status of your FX trades, please follow the steps below:
ꔷ Go to “Payments” in the top navigation
ꔷ Select “Transaction management”
ꔷ Select “FX trades”
ꔷ View trades that have been paid/Settled, process/open, cancelled or processing
