Term trades include the most widely known hedging instruments – Forward contracts and swaps. The primary function of a forward is to ensure against unfavorable trends of the exchange rate of two currencies.
Derivative transactions (FX risk Hedging)
With Akcenta, you can hedge against exchange rate risk up to 1 year in advance.
Peaceful sleep
In the event of a negative exchange rate, you do not lose any margin on the trade.
Better cash flow planning
Better and more efficient financial planning for your business.
Maximum flexibility
You always have the option to shorten or lengthen the forward according to the current situation and need.
No charges
We will offer you the most advantageous solution without obligation and without charge.
Ensuring the course
We will provide you with the exchange rate for that currency for the entire duration of our cooperation.
A simple tool
Forwards are among the simplest instruments for hedging exchange rate risk.
Derivative transactions
Example of a forward
Client – an exporter made a contract in Euros for the sale of machine equipment with a delivery date in 6 months. The Client entres the cost in CZK, using the current exchange rate for calculating the future exchange rate. The Client is now, from the moment of setting the price of the product, until the delivery date exposed to risk of CZK strengthening against the Euro. If CZK is stronger in 6 months, i.e. the exchange rate will have a lower value, the Client will receive a smaller amount of crowns for the amount in Euros than expected (originally calculated).
With an insured future exchange rate, a company gains an effective instrument for financial planning (a calculation rate) and can minimize potential risks. For this purpose instruments for insuring the exchange rate are used: forward contracts.
Our exchange rates
Currency
Buy
Sell
The exchange rates shown are informative in nature; for the most up-to-date rates, please call +420 498 777 800. You can find current exchange rates in our Online Broker anytime.
Guide to payment types
Standard forward
This is the simplest instrument for hedging against adverse movements in the exchange rate of two currencies.
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Par Forward
The difference with standard forwards is the possibility to compose a series of multiple forwards with regular maturities.
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Window Forward Contracts
The fixed settlement date of the forward is replaced by a 3-week interval.
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Amortization Forward
The predetermined settlement date of the forward is replaced by the agreed period.
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Currency Options
When purchasing a currency option, the client has the right to buy or sell the currency at a pre-agreed rate.
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Swap trades
This is an agreement to buy or sell one currency for another with simultaneous re-sale.
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AKCENTA CZ does not have a traditional rate sheet. Instead, it compiles individual exchange rate bids for each client at the moment a trade is negotiated.