Managing and hedging

An FX option gives your business the right, but not the obligation, to exchange currency at an agreed rate on or before a set date. For that right, you pay a premium upfront, which depends on the size of transaction and market premium at the time. If the market moves against you, you exercise the option and your agreed rate protects you. If it moves in your favour, you let the option lapse and take the better market rate instead. That flexibility is what sets options apart from forward contracts, which lock you in completely. Options suit businesses that want a defined minimum exchange rate without giving up all of the upside. The premium you pay for an FX option is not refundable, regardless of whether you exercise the option. More complex products such as participating forwards and ratio forwards have additional features and risks you should take independent advice on as to whether this is right for your circumstances

A forward contract lets you lock in an exchange rate today for a currency conversion that will happen at a future date. If you know you need to pay €500,000 to a German supplier in three months, a forward contract means you agree the rate now, regardless of where the market moves between now and then. This turns an uncertain future cost into a predictable one, which is extremely useful for budgeting and margin management. A forward contract is a binding commitment. You will be required to complete the transaction at the agreed rate at maturity, even if the market has moved in your favour by that point. Forward contracts are regulated financial instruments and are subject to our standard terms and conditions.

You can convert FX instantly, or lock in rates on future FX transactions via Hedging. You can set limit orders for conversions and roll trades automatically all from one platform. 

If it’s a Spot trade, your rate is fixed the moment you confirm. With a Forward, your future rate is locked, giving you protection but also with an obligation to exchange in the future.

You can deposit collateral to get access to the most competitive rates. We will consider deposit-free hedging for businesses in the UK and EU; we’ll agree fair, transparent terms upfront visible in your dashboard. Our machine learning models make almost instant credit decisions to get you up and running in minutes, and that can save you lots of time versus a traditional bank or broker.