"Financial House Logos-TM" JSC

Forward Plus

Forward Plus - Forward deal, providing an opportunity to benefit from the favorable movements in the exchange rate to a certain barrier by taking the risk of switching it.
Description
Financial product for protection against currency risk and opportunity to participate in a favorable movement in the exchange rate to a certain barrier.

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Features:

  • Predictability of the cash flows from the transactions in foreign currencies by fixing the future exchange rate.
  • Flexible terms of the contract.

Example:

Client wants to fix his costs for service payments in dollars. By using a fx forward the client is protected to the level 1.4030 *. By choosing the Forward Plus the client receives a fixed exchange rate of 1.4000 * (rate close to the forward) and participates in certain circumstances in further favorable development of the course to the level 1.4400 * - Knock In (KI) barrier.

If the euro / dollar exchange rate reaches or crosses the barrier of 1.4400 * during the contract period (eg 3 months), the client sells euro and buys dollars at 1.4000 *, the level of the ordinary forward. During movement of the exchange rate below the barrier, the client can choose the best course between 1.4000 * and the spot exchange rate. As a result, the client will have a potential benefit in favorable movement in the exchange rate over the forward rate up to the level of the barrier.


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