Business FX
Fix a rate now for a payment due later.
A forward contract converts an unknown future currency cost into a known one. It removes uncertainty — it does not promise a better outcome.
How a forward works
Agree today, settle later
Rate agreed
Today
You and LINHILL FX agree the exchange rate, the amount and the future settlement date.
Exchange happens
Settlement date
On the agreed date the exchange takes place at the rate fixed today, whatever the market has done since.
A forward contract is a binding commitment. If your underlying need changes, closing or amending a contract may carry a cost. Any deposit requirements are confirmed before you commit.
Certainty of cost, not certainty of advantage
If your business has a known payment due in three or six months, the amount in your own currency is unknown until the day arrives. A forward contract fixes the rate now, so the cost becomes a figure you can budget and price against.
It is important to be clear about the trade-off. If the market moves in your favour before settlement, the fixed rate will be worse than the rate available on the day. A forward is a tool for removing uncertainty, not for outperforming the market.
Who this is for
Built around how you trade
- 01
Importers with known future supplier invoices
- 02
Exporters expecting foreign currency receipts on a set date
- 03
Businesses budgeting in euro for costs in another currency
What this covers
How we work with businesses on this
A rate fixed in advance
The rate for a future settlement date is agreed at the outset.
Budgeting and pricing
A known cost makes it easier to price contracts and plan cash flow.
Matched to your dates
Contracts are structured around the dates your payments actually fall due.
Discussed in full first
We talk through the obligations and margin implications before anything is agreed.
What to prepare
Have these to hand
- 1The amount and currency you will need
- 2The expected settlement date
- 3The commercial reason for the payment
- 4Your internal budget rate, if you have one
Before you proceed
Things worth knowing
- A forward contract is a binding commitment that must be settled, whatever the market rate on the day.
- Forward contracts typically require an initial margin and may require further margin if the market moves against the contract.
- A forward contract does not protect against loss and does not guarantee a better rate than the market.
FAQ
Common questions
Available tenors depend on the currency pair and the arrangements in place. We will confirm what is possible for your specific requirement.
Related services
You may also need
Ready to discuss forward contracts?
Tell us what you need and a member of the team will come back to you with a transaction-specific quote.