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Introduction
FX Forward (with Option) Transaction is similar to FX forward outright transaction. However, the company has the flexibility of settling the transaction of foreign exchange any day up to the last day of the agreed date. The longest tenor of the FX Forward with Option transaction is 6 months.
We provide tailor made FX Forward (outright) product for company. By booking FX Forward (with Option) contract with our Bank, the company can avoid the risk of FX fluctuation against them. At the same time, the company can enjoy the flexibility of choosing any date before contractual settlement date to settle the FX transaction.
Product Features
FX Forward (with option) transaction is available for major currencies against US dollar and Singapore dollar. Customer can fix the foreign currency rate and have the option to exchange anytime within the tenor of the forward contract.
Eligible Applicants
Company Customers
Application Requirements
Companies can carry out the transaction by establish FX credit facility or by margin.
Application Procedures
The FX Forward product is for our customer to hedge their future exposure to foreign exchange risk. Customers who wish to have FX Forward transaction with our Bank must have Import / export, or other business transaction backgrounds.
There are two ways of dealing FX Forward with our Bank:
(1) By credit limit: The customer who can fulfill the credit assessment requirement of our Bank will be given respective FX Forward limit. The customer will be able to transact after the agreement and documents are signed in accordance with the required procedure.
(2) By margin: The customer who has placed the required margin with our Bank and signed the necessary agreement will be able to transact FX Forward. Any outstanding FX forward contract will be mark-to-market and additional margin may be required if any unrealized loss occurs.
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