FX Spot (T+0)
A foreign exchange transaction that involves the purchase of one currency against another at an agreed exchange rate, with settlement occurring on the same day as the transaction (T+0 or value today).FX Spot (T+0)
A foreign exchange transaction that involves the purchase of one currency against another at an agreed exchange rate, with settlement occurring on the same day as the transaction (T+0 or value today).
Brief Description
A foreign exchange transaction that involves the purchase of one. currency against another at an agreed exchange rate, with settlement date occurring on the transaction date (T+0 or value today), the following day (T+1 or value tomorrow) or on the spot date (T+2 or value spot).
Key Features:
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Benefit: Immediate settlement of currencies at prevailing market rates.
Corporate and Government Banking
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FX Spot (T+0, T+1 and T+2)
Key Features:
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Benefits
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Immediate settlement of currencies at prevailing market rates.
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Straightforward and easy to understand compared to more complex FX instruments like FX derivatives.
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FX Forwards (T+3 up to 1 year)
Brief Description: A contract to purchase/sell a specified amount of currency in exchange for another currency at a predetermined exchange rate. The contract will be settled at a future date, which will be at least three business days up to one (1) year after the transaction date.
Key Features:
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Benefits
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Enables effective management of FX risk on future receivables and payables by locking in the exchange rate at the time of the transaction.
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Enhances budgeting and forecasting accuracy by eliminating FX rate volatility from future transactions.
Other remarks: (applicable to both products under Corporate and Government Banking)
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Risks
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For FX Spot (T+1 and T+2) and FX Forwards, once executed, the client cannot take advantage of favorable exchange rates on the settlement date.
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Possible payment of cancellation/replacement cost if the transaction is cancelled.