Selecting the Right Contract

It is impossible to predict the exact future movements of currency markets, past performance is not a reliable guide to the future direction of currencies. We believe that we serve our clients best, not by speculating, but by focusing on identifying and managing risk exposure at the earliest opportunity.

There are a number of options available to you to help you manage the potentially damaging effects of fluctuating exchange rates. Your dedicated IFX consultant will take time and care to understand your situation and priorities fully, and will work with you to select the solution that best suits your needs.

Spot Contract
If you have funds available and wish to exchange all or part of them immediately you can enter into a spot contract. Because of the high volumes of currencies we handle, and our comparatively low overheads, we will secure the best rate available. Your currency will be available for transfer the moment IFX has received your cleared funds.

Forward Contract
When your overseas transaction involves a payment in the future, or a series of payments over time, you can enter into a forward contract. This allows you to minimise your risk by fixing an exchange rate for up to 12 months in advance, with the option to draw on these funds at any time. By locking in the cost of your investment at today’s rate, it protects you from adverse market movements during the period of the transaction.

Limit Order
If you have time to wait for favourable market movements, you can place a market order. Nominate your target exchange rate and IFX will monitor movements - over an extended period if necessary - and execute the trade once your desired rate is reached.

"Stop Loss" Order
When you place a market order, we can also offer you a ‘safety net’ mechanism, allowing you to nominate a lower exchange rate, (or ‘stop loss’ order) that will minimise your losses in the event of a sudden fall in the market.