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Name
Foreign Exchange Forward Trading
Introduction
Foreign exchange forward trading refers to the foreign exchange transaction in which Bank of China Rotterdam Branch makes fund delivery on the agreed date (certain day after the second working day following the conclusion day) at agreed exchange rate on behalf of the customers.
Features
Entrusted by customers, the Branch buys one currency and sells another on designated delivery date at agreed exchange rate to achieve conversion between currencies, so as to lock the exchange rate on the contract day, avoiding risks and loss caused by fluctuation of exchange rate to customers.
Currency
USD, EUR, HKD, GBP, CNY and other major currencies.
Target Customers
Customers in need of locking the forward exchange rate.
Procedure
1. Opening account: customers applying for forward foreign exchange deals shall open an account with Bank of China.
2. Signing agreement: before making transactions, customers shall sign the Master Agreement on Financial Transactions with Bank of China Rotterdam Branch.
3. Margin: customer needs to pay certain proportion of margin or have Bank of China deduct certain amount of credit line.
4. Application: customers confirm the details of forward foreign exchange deals through a written authorization.
5. Conclusion: once the transaction is completed, Bank of China Rotterdam Branch will deliver the written transaction confirmation to customers.
6. Delivery: the fund is actually settled on the delivery date. Customers can apply for early or deferred delivery, or unwind the transaction as needed.
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