Here at RationalFX our objective is to minimise your risk and save you as much money as possible. We will provide all the tools and market knowledge you will need to protect yourself against fluctuating exchange rates.

Let's assume that you work in Afghanistan for a securities company and get paid in US Dollars:
 

SPOT trade

You can opt for changing the funds as and when you get paid. Thus you will be taking the Spot rate on the day of your transfer.

 

Time Option/Forward Trade

You know how much you are going to be paid over the course of the year but are worries about how the fluctuations in the currency market will effect your salary:

Even if you do not have access to all of your funds you can still fix your rate for a future date by using one or more forward trades.

In essence, a forward contract means that you can buy the currency now, and pay for it later. You will be required to pay a 10% deposit now and the 90% balance upon the maturity of the contract. For example, if you wish to sell $50,000 and purchase British Pounds but you will receive this over the next three months you can agree the exchange rate now, place a £5,000 deposit, and draw down on the currency over the next three months at the pre-agreed exchange rate. This way you can benefit from fixing your costs and not have to worry about the fluctuating exchange rate. You have the option of fixing rates for up to two years in the future.

 

Limit Order

If you see yourself as a market guru and want to achieve a certain rate but don’t have the time – we can help you!

If you have a view on the market and believe that it could improve, we can help you by placing a limit order. This allows you to specify the rate you would like to achieve. We monitor the markets on your behalf and, should the market reach your predetermined exchange rate, your currency is bought or sold automatically. Your order is live 24 hours a day and can be amended or cancelled at any time prior to the transaction taking place.

At this stage it is always important to remember one thing; you would never agree to buying something without know the price and without fixing the rate that’s exactly what you are doing

Please do not hesitate to speak to one of our account managers to discuss your options

 

 

How to Apply