Left Arrow Icon

Page 5 - brochure_final
P. 5

Forward Contracts

                     Forward contracts enable you to reduce your exposure to volatile currency market uctuations. A forward contract allows you to take advantage of
                current market prices, without having to pay all the funds up front. With contracts available up to 12 months and open periods of 90 days, Olympia will
               work with you to determine the best strategy for your needs. Forward Contract rates are determined by the current spot rate, the length of the contract
               and the interest rate between the two countries (currencies). Sales margins can be extremely tight, and taking risk with currency exchange can have a
               signi cant negative impact on your bottom line, especially over a period of several months. Using forward contracts allows you to mitigae any future
               foreign exchange risk or to lock in pro t margins today.

     Closed Forward Contracts

              A closed forward contract is set for a xed future date. If you know the
            exact future date you will require the foreign currency, a closed forward
            contract allows you to take advantage of today’s market pricing. A
           forward contract locks in your currency price so you don’t have to
       worry about currency uctuations a ecting your future transaction.
    Once your payment date arises we will contact you to complete the
  transaction.

Open Forward Contracts

An open forward contract provides you with some exibility with respect to
completing the foreign exchange transaction. With open periods from 30-90 days,
an open forward contract allows you to close out the contract within the de ned open
period. If you do not know the exact date for your future currency transaction, but want to
take advantage of current pricing, an open forward contract provides you with exibility and
peace of mind.
Left Arrow Icon    1   2   3   4   5   6   7   8 Right Arrow Icon

 

 

 

 

 

Right Arrow Icon