Spot transactions
A spot transaction is the exchange of an amount in one currency into another, typically effective two days after the date of the transaction.

Forward transactions
A forward transaction is a binding agreement to buy or sell a fixed amount in a given currency on a fixed date. By means of forward transactions, your company will know the exchange rate at which international sales or purchases are to be settled. There are no set-up fees involved in entering such transactions.

Forward swaps
If you have both receipts and payables in the same foreign currency, but with timing mismatches, then your company may be able to avail of forward swaps to help manage your cashflow.

Currency-option-based strategies
Some companies with significant foreign exchange exposure may be in a position to avail of currency-option-based strategies to help manage the currency risk. These strategies will protect against unfavourable currency movements, and they can also give participation in favourable moves.

These products are regulated by the Financial Services Authority and are available only to companies which meet specific criteria.

Speak to your business adviser about your alternatives for managing your currency risk.