FX TIME OPTION-Forward contract with possibility of execution during the pre-defined period

Time option*** enables client to fix the foreign exchange rate for a specific period in the future when the specific FX inflow or FX payment is expected.

 

Fixing the exchange rate protects the Time option buyer against the FX risk - the risk of future price changes.

Unlike FX Forward contract, Time option does not specify the exact date of settlement and enables execution on any date within a previously defined period of time.

 

The minimum amount of transaction is in the value or in other currency equivalent of EUR 50,000 with maximum tenor from 3 to 180 days

 

CLIENT’S BENEFITS:

• Whether the conversion is performed the first or the last day of the agreed time period the client pays the same price.
• Possibility to hedge against FX risk in case you don’t now the exact day of payment / inflow

 

DEAL CLOSURE:

• Like other FX products deals are closed by the telephone and the FX Request/Confirmation, containing the agreed details: type of currency, rate, amount and account number is exchanged by fax.
• As a protection against default risk, client is bound to ensure special purpose deposit proportional to the contracted deal period and calculated as a percentage of the total value in BAM.

 

*** To meet the client’s demands Sales Desk is willing to assist client in booking the time options or any complexes FX operations.

 

Other details are agreed with the client directly.