The Participating Forward
To take out a Participating Forward contract, you need to advise us of the amount, the currencies involved, the expiry date and the protected rate at which you would like to buy your foreign currency. We will tell you the level of participation/percentage you can benefit from.
How does a Participating Forward work?
For example, you import materials from the US and have to pay a supplier $1,000,000 in six months time. The forward rate for six months is 1.60. You would like to benefit from favourable exchange rate moves but are reluctant to pay a premium for this. You inform us that you are prepared to accept a protected rate of 1.57. We then calculate the participation level to be 50 percent.
Key facts
- A deposit line is required but this is less than the equivalent forward.
- Available in any currency pair where there is a liquid forward market.
- This foreign exchange option is subject to variation margin.
Advantages
- No premium is payable for this product.
- 100 % protection on the currency exposure.
- This allows you to benefit from favourable currency moves on a percentage of your total exposure.
A dedicated corporate client adviser is ready to help
Please get in touch.
Contact details
5th Floor, 62 Cornhill
London, EC3V 3NH
Map and directions
We are situated in the heart of the city of London.
Nearest tube/DLR stations:
Bank
Liverpool Street
Aldgate
Monument
Nearest mainline rail stations:
Liverpool Street
Fenchurch Street
Cannon Street
