Navigating the foreign exchange market can be complex, but with the right tools and knowledge, you can make informed decisions to get the most out of every transaction.
One such tool that has gained significant traction among businesses and individuals is the "currency forward contract", also known simply as a "forward contract". In this article, we’ll break down its concept, benefits, and how Equals Money’s international payments service can facilitate transfers for all your FX needs.
At its core, a currency forward contract is an agreement between two parties to buy or sell a specific amount of foreign currency at a predetermined rate, set for a future date.
This means that you can “lock in” a rate today for a transaction that will take place weeks, months, or even a year from now.
When you’re dealing with international payments, it's crucial to have a reliable partner to guide you through the intricacies of the foreign exchange market. Here’s why Equals Money should be your top choice:
Getting started with Equals Money’s international payments service is simple:
In an ever-evolving global economy, having the right tools to manage your foreign exchange transactions is paramount. Currency forward contracts offer an effective solution to protect yourself from the unpredictability of the FX market. By choosing Equals Money as your FX partner, you’re choosing reliability and expertise when making cross-border transactions.
Equals Money can only offer forward contracts to facilitate payments for goods and services.
When using a forward contract, should the rate continue to move after the contract has been agreed, you’ll still receive the original agreed exchange rate, presenting a potential disadvantage in choosing a forward contract. However, many looking to make international payments find the stability offered by a forward contract outweighs this disadvantage.
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