Different Types of Contract

When dealing with Axia Fx there are three different types of Foreign Exchange contract that you can deal with. If you don’t understand them, your Personal Account Manager is at hand to help you decide on the best contract for you. The contracts are as follows:

Spot Contract

This is the purchase of currency if you need it within ten days. We agree an exchange rate based on the current spot rate, you transfer over your payment to us within seven days (to be discussed with your Personal Account Manager), and once we receive this we will transfer this money overseas for you.

Forward Contract

This is the purchase of currency if you need it for any timescale from ten days to two years time. We agree an exchange rate for a fixed date (maturity date) in the future, you pay us a margin(starting from as little as 3%)* deposit to fix the rate, and the balance is due two days before the agreed maturity date.

As an example, this is helpful if you have staged payments for your overseas property. You can fix the exchange rate for each of the payments you need to make, and so know today exactly how much the property is going to cost you.

Budget Order

If there is a particular exchange rate you are looking to achieve, and have some time on your side then you can set up a budget order. A budget order is a way of making sure you get an exchange rate that is within your budget, and trying to prevent your budget being broken. As soon as your desired exchange rate is achieved, the currency can be purchased for you. This will allow you more control over your budget.
Also bear in mind that the exchange rate may never reach your budget level, so you may want to consider a stop loss order at the same time, where you can tell us the rate you do not wish to trade below. This helps in the situation where the exchange rate reaches a level which means you can no longer purchase your property.
Once you have purchased your currency, you do not have to send it straight away. We can hold the currency in our secure client accounts until you require us to forward them on. You may only want to send part of the money you have held on account, again this is not a problem as we understand the process of purchasing overseas and there are often cases when this may be necessary .