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Instruments for hedging against exchange risk

Forward Rate Forward
A transaction intended for clientele who need to exchange available foreign money from one currency to another with maturity of more than two working days. This can be used to hedge against exchange-rate risk.

Forward Rate - Forward with Variable Payment
This is the transaction intended for clients who need to exchange available funds from one currency to another with the date of payment more than two days away, but who do not know the exact date of the conversion beforehand. This is used to hedge against exchange rate risk.

Average Rate Forward
This is a transaction intended for clients who will be exchanging available funds from one currency to another at some point in the future, but who do not know the exact dates and volumes of the individual transactions beforehand.

Foreign Exchange Swap
Transactions intended for clientele who need to exchange available foreign money from one currency to another and back (for the purpose of making payments abroad, for purposes of domestic crown payments, etc).

Currency Options
Transactions intended for clientele who need to exchange available foreign money from one currency to another and that the same time hedge against exchange-rate risks. You have the right to request that the underwriter provide a rate arranged beforehand on the day of maturity of a put or call option for a particular amount of foreign currency.
 
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