Vanilla Protection
To buy a Vanilla Protection you need to advise us of the amount, the currencies involved, the strike price and the expiry date. We will then inform you what the premium for the structure will be (which is dependent on market variables at the time).
How does a Vanilla Protection work?
For example, you import materials from the US and have to pay a supplier $1,000.000 in six months time (sell GBP and buy USD). You wish to ensure a minimum rate of 1.56 for 6 months expiry but would like to benefit if the market moves higher. You buy a six month option at 1.56 USD Call for $1,000,000 with a premium of 2.9% of your hedged amount.
Key facts
- A premium is required within 48 hours.
- Available in any currency pair where there is a liquid forward market.
- Excellent for hedging forward cash flows.
- Important information – a premium is charged.
Advantages
- 100% protection on the currency exposure.
- Allows you to benefit 100% from a favourable currency move,
- Allows you to hedge uncertain cash flows without obligation
- No deposit is required.
A dedicated corporate client adviser is ready to help
Please get in touch.
Contact details
Corporate FX+
5th Floor, 62 Cornhill
London, EC3V 3NH
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
