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Turning Currency Volatility into Opportunity: How Forward Contracts Can Safeguard Your International Transfers
At Thwaytes Capital, we believe that currency markets shouldn't just be a source of risk—they can also be a strategic advantage when approached smartly. One powerful tool that helps our clients navigate market uncertainty is the Forward Contract.
Think of a Forward Contract as a way to secure today’s exchange rate for a future transfer. It gives individuals and businesses the flexibility to lock in a rate now, even if the actual payment happens months down the line. This type of agreement can run for up to 12 months and is designed to offer protection from unpredictable currency movements.
In essence, it's a ‘fix now, pay later’ solution for your foreign currency needs—especially valuable when planning ahead with known costs or revenues.
Foreign exchange markets can shift rapidly. A Forward Contract helps hedge against these fluctuations, offering stability and clarity when budgeting for international payments. Whether the pound weakens or strengthens, your rate stays fixed—removing the guesswork and potential stress from future transactions.
Of course, it’s important to remember that if the market moves in your favour after locking in a rate, you won’t benefit from the improved rate—but for many, the peace of mind is well worth it.
Forward Contracts are particularly popular with:
In all these scenarios, locking in your exchange rate gives you a clearer picture of your future cash flow—making international financial planning far more predictable.
In FX terms, hedging simply means taking action to limit your exposure to currency risk. A Forward Contract is one of the most straightforward ways to do this. It gives you certainty, especially when markets are volatile or trending unpredictably.
Need More Certainty in Uncertain Markets?
If you or your business is exposed to currency movements, a Forward Contract could offer the stability you need. At Thwaytes Capital, we help clients tailor FX strategies to match their risk appetite and cash flow goals—backed by regulated solutions and personalised support.
Talk to us today or start opening your account. To explore how forward contracts could support your international plans.
020 3089 4377
dealing@thwaytescapitalgroup.co.uk
Trading address:
27 Bush Ln, London EC1V 2NX
Registered Address:
Kemp House 160, City Road, London, EC1V2NX
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