Spot Exchange transactions:
A spot transaction is the purchase or sale of foreign currencies for spot delivery. Spot is defined as value 2 working days from the date of transaction. Transactions can also be done for delivery on the same day or next day depending on your needs and the market situation. Spot transactions are offered in all major currencies and many minor currencies.
Forward Exchange transactions:
Forward Exchange transaction is the purchase or sale of foreign currency for delivery on a future date. This is extremely useful if you have foreign currency assets or liabilities maturing on a later date, to avoid losses on account of movement in rates. The due date of the contract has to be a working day in both the currency centers.
Forward exchange may also be arranged for delivery during a specified period, with the actual delivery date being your choice, subject to 2 working days notice. Failure to deliver currencies under the contract may lead to payment of cancellation charges, which will depend on the movement of exchange rates in the interim period.
Forward exchange is offered in all major, and many minor currencies.
The maximum maturity date will depend on the concerned currency, although for most it is likely to be one year.
Swap Exchange transactions:
A swap transaction is the simultaneous purchase/sale and sale/purchase of currency for different value dates and at prices that reflect the interest differential between the concerned currencies for the stated period.
This product may be used to extend the maturity of an exchange commitment, or to use cash holdings in one currency to raise funds for a limited period in another.
Swaps are available in all currencies where forward exchange is available.
he maximum maturity date will depend on the concerned currency, although for most it is likely to be one year
A currency option is similar to a forward contract in that should you buy a contract, you can buy or sell a currency on a future date at a rate, which is determined today. But unlike a forward contract, you have no compulsion to deliver currencies under this contract. This gives remarkable flexibility to forego the contract and deal at the current market rate in case the market moves in your favor. If the market moves against you, you can demand delivery by the bank.
In other words this is a forward contract that needs to be performed at your option. In exchange for this right, you have to pay an upfront premium to the seller of the contract. We sell options to you in all major currencies. This product is suitable if you have contingent exposures, which may or may not materialize. It is also handy in cases where the maturity date of the exposure is not known, or where the client is not sure about the direction of movement in rates, but wants to play safe.