Our FX experts will work with you to secure favourable rates for the currencies and volumes your business needs. Book forward contracts in EUR, GBP, USD, and more to gain greater control over cash flow and plan with confidence.
Forwarding (or FX/ currency forwarding) is the process of fixing an exchange rate today for a currency transaction that will happen at a future date.Instead of waiting and using the live market rate when a payment is due, you agree the rate upfront. This helps businesses manage foreign exchange risk, protect profit margins, and gain certainty over future international payments or revenue.
Businesses use FX forwarding to reduce uncertainty and protect against adverse foreign currency movements.
Key benefits include:
- Locking in exchange rates for future payments
- Protecting profit margins on overseas contracts
- Improving cash flow forecasting
- Reducing exposure during volatile market conditions
Things to consider before booking a forward contract:
- When you enter into a forward contract, the exchange rate is fixed for a specific amount and settlement date.
- This shields you from adverse market movements, but it also means you cannot take advantage of any favourable shifts in the rate that may occur later.
Currency forwards allow you to prioritise financial stability over short-term market speculation.
A foreign exchange forward contract is an agreement to exchange one currency for another at a fixed rate on a future date.
Instead of using the live (spot) exchange rate on the day a payment is due, you agree the rate in advance. You then settle the contract on the agreed maturity date, exchanging the specified amount of currency at the pre-agreed rate, regardless of where the market has moved.
Businesses use currency forwards to reduce currency risk/ foreign exchange risk, protect profit margins, and gain certainty over future international payments or revenue.
“FX” (foreign exchange) usually refers to a spot currency transaction, exchanging one foreign currency for another at the current market rate for near-immediate settlement (typically within two business days).A currency forward, by contrast, locks in today’s exchange rate for settlement at a future date, which can range from a few weeks to up to 24 months.
In short:
- FX spot = exchange at today’s rate (spot rates), settled now (spot contract)
- FX forward = exchange at today’s rate, settled later
To book a currency forward contract, you’ll typically need:
- The currency pair (e.g. GBP (pound sterling) to USD (US dollars) or USD to MXN (Mexican Peso))
- The amount you want to exchange
- The settlement date (or approximate timeframe)
- Details of the underlying business transaction
You may also be required to provide a deposit (sometimes called initial margin), depending on the size and duration of the contract. An FX specialist can guide you through the process and confirm what’s required before booking.
An FX forward contract/ currency forward is a legally binding agreement. Once booked, you’re committed to exchanging the agreed amount at the contracted rate on the agreed date.
However, depending on your provider and market conditions, it may be possible to amend, extend (roll forward), or close out a contract early — though this may result in additional costs or gains depending on where the market has moved. It’s important to speak with your FX provider before making changes.
Booking your currency forward with Equals Money gives you flexibility, support, and control.
You can manage contracts directly in our multi-currency platform alongside your wider international payments and multi-currency balances, or work with our FX specialists for tailored FX solutions and execution.
With favourable rates, expert support, and the ability to book contracts up to 12 months in advance, Equals Money helps businesses secure certainty and protect margins in a fast-moving currency market.
