How can you minimise currency risk?

There are several ways where we can protect your investment against adverse movements in the exchange rates. Your personal dealer will keep you informed of any significant changes in the exchange rates so that you can make an informed decision of when you wish to exchange your currency. For total security of mind, a Forward Contract, Option and Limit Order can be placed.

A Forward Contract allows you to fix today’s exchange rate for a future time when you will need the currency. This allows you to budget without worrying about future market fluctuations, furthermore only 5-10% of the fund is required now to secure the currency.
An Option Forward Contract gives is like a Forward Contract with the flexibility for you to draw down the full amount or part amounts before the maturity date.

A Limit Order is an agreement for them to automatically book the currency when the exchange rate reaches a pre-defined value. The Limit Order may be placed below and/or above the current exchange rate; this will protect your investment from adverse currency movements whilst taking advantage of positive movements in the market.

A Forward Contract and Limit Order can be used in combination. For example when the exchange rate reaches a defined value, automatically fix the exchange rate at that point and have the currency available in 3 months time.

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