At piagi we offer various types of contracts that you can use to execute. If you are unclear of any terminology, or are uncertain to which is will be the most beneficial to you please contact your specialist and they will happily assist.
Our specialist will listen to and understand your needs, then suggest the best product that meets your requirements, allowing you to relax in the knowledge that you have obtained the most for you money and have protected yourself from adverse risk.
A spot contract is a binding obligation to buy or sell a certain product or amount of foreign currency at the current market rate, for settlement in two business days' time. To enter into a spot deal you advise us of the amount, the two currencies involved and which currency you would like to buy or sell.
A forward contract is a binding obligation to buy or sell a certain product or amount of foreign currency at a pre-agreed rate of exchange, on a certain future date. To take out a forward contract you need to advise us of the amount, the two currencies involved, the expiry date and whether you would like to buy or sell the currency.
Simply put, this is a “buy now, pay later” option with a delivery period
An Order is a method of making sure you get an exchange rate that is within your resources, and trying to prevent your financial plan from being broken. As soon as your desired exchange rate is achieved, the currency is automatically purchased for you regardless of what time zone it occurs. This will allow you more control over your financial plan and utilises the time you have in to make payment to try and achieve better exchange rates.
Which option is right for you will depend on your timing, circumstances and currency requirement(s) and you can discuss your options at greater length with any of the piagi team.