FX & Derivatives

Derivatives products can help your company in managing the risks related to foreign exchange and interest rate; for example, FX Forwards, Currency Options, Interest Rate Swap, Cross Currency Swap

For more information about the above and other instruments, please refer to “A Quick Guide to Derivatives Transactions.” (Download)

The description of these 4 products are as follows.

This product is suitable for importers or exporters which have payables / receivables in foreign currencies. These companies can enter into FX Forwards to buy or sell such foreign currencies in advance, eliminating the risk related to the market fluctuation due to foreign exchange rate movement. The advantage of this product is that there is no entering fee.

Currency Options gives the right, but not the obligation, for a holder to buy (Call Option) or sell (Put Option) a foreign currency at an agreed rate on the pre-determined settlement date. The holder may not choose to exercise this right and buy/sell such foreign currency at the prevailing market rate in the future. This product can be considered as an alternative from FX Forwards for managing foreign exchange risk. The holder of this product is required to pay option premium for entering into such transaction.

Interest Rate Swap is suitable for a company that would like to manage its interest rate risks. This product is an agreement between two parties to exchange interest rate cash flows, based on a notional amount specified on trade date, from a floating rate to a fixed rate (or vice versa) or from one index to another in the same currency (Basis Swap). Its settlement is usually on a net basis.

Cross Currency Swap is an agreement between two parties to exchange interest and principal payments denominated in two different currencies in a pre-determined period of time. This product is suitable for a company which borrows or invests in a foreign currency for a fixed time period. Also, this company needs to hedge both the interest rate and foreign exchange risks.

FX & Derivatives

โปรโมชั่นและสิทธิพิเศษ

ข่าวสารและกิจกรรม

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FX & Derivatives

โปรโมชั่นและสิทธิพิเศษ

ข่าวสารและกิจกรรม

เรื่องน่ารู้

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