"Financial House Logos-TM" JSC

Flexible Forward

Forward with the possibility of making partial payments on its performance during the period untill its expiration.
Financial product based on a fixed exchange rate, agreed nominal value and end date until which the mutual obligations must be executed, allowing the client for partial transactions until the full execution of the forward commitment.

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Characteristic:

  • Flexibility in managing the cash flow.
  • Minimum nominal value of the contract - € 1,000,000.
  • Ability for contract execution up to 1 year after the date of its conclusion.
  • Minimum value for an open run time execution of the contract - € 50,000 and multiples of € 50,000 paid.
  • Obligation for full execution at the agreed nominal value until the expiry date.
  • Flexible terms of the contract.

Example:

By choosing the Flexible Forward, the client benefits from the advantages of the regular forward, while there is freedom in choosing the time for a full or partial execution of the deal, which reflects in a somewhat unfavorable fixed exchange rate than the regular Forward. The client signs a contract with the bank under Flexible Forward (based on a hypothetical euro / dollar spot exchange rate of 1.4200)* within a year after the contract conclusion to buy dollars worth € 1,500,000 * at a rate of 1.4070 *. The client chooses full or partial performance of the contract according to his own liquidity, and the only obligation is the full execution of the deal until the maturity date, including. If on a specified date when the client needs to sell euro, the market rate is better, for example 1.413 *, he can sell the euro at the market rate. If the forward rate is better than the current market rate, for example 1.3950 * the client sells euro at the agreed forward rate - 1.4130 *


* All interest and currency exchange rates, terms and premiums are indicative and they do not binding on "Financial House Logos-TM" JSC.