Forward contracts
Lock in future exchange rates to protect your margins and gain certainty over cash flows.
Why use forward contracts?
Forward contracts remove uncertainty from known FX exposures: purchase orders, recurring supplier payments or contracted revenue in foreign currencies.
- Protect quoted prices and margins
- Improve budgeting accuracy
- Reduce sensitivity to market volatility
How a forward contract works
Today
Lock in rate
Contract period
Maturity
Exchange at agreed rate
Risk and considerations
Forwards create an obligation to exchange currency at an agreed rate and date. We help you understand the impact of:
- Over-hedging and under-hedging
- Early drawdowns or extensions
- Mark-to-market movements
Governance and documentation
We support your internal governance requirements with clear trade confirmations, reporting and market commentary in plain English. Forward trading is subject to our standard terms, credit approval and documentation.
Contract details
- Tenors from a few days to 24 months+ (subject to approvals)
- Flexible drawdown structures
- Tailored to your cash-flow timing
- Integrated with your FX policy
Further reading
- Forwards vs spot: hedging AUD supplier payments When predictable foreign payments are more than a few weeks out, spot conversion is usually the wrong call. A walk through forwards vs spot.
- Mark-to-market for FX forwards: what auditors want Mark-to-market for FX forwards: what auditors look for in valuation, hedge designation, effectiveness testing and AASB 7 disclosures.
- Layered hedging: a 12-month framework for importers A 12-month framework for Australian importers running $5–50M programmes: the 75/50/30/15 cascade, instrument selection, and governance.