These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly. The registered office address is at 1 Lyric Square, Hammersmith, London W6 0NB. SCOL is a private company limited by shares registered in England and Wales. SCOL is a wholly-owned subsidiary of Smart Currency Exchange Limited, and is authorised and regulated by the Financial Conduct Authority to carry out MiFID business with reference number 656427. If you are in doubt as to the suitability of any foreign exchange product, SCOL strongly encourages you to seek independent advice from suitable financial advisers.Ĭonsulting a website or receiving a publication does not constitute a customer relationship and SCOL shall not have any duty or incur any liability or responsibility towards any person or entity as a result thereof.
SCOL makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.įoreign exchange options can carry a high degree of risk and are not suitable for everyone as they can have a negative impact on your capital. SCOL shall not be responsible for any loss arising from entering into an option contract based on this material. Any changes in exchange rates and interest rates may have an adverse effect on the value, price or structure of these instruments.
#BRL CAD EXAMPLES PROFESSIONAL#
This material provides you with generic and illustrative information and in no way can it be deemed to be financial, investment, tax, legal or other professional advice, a personal recommendation or an offer to enter into an option contract and it should not be relied upon as such. This means that you must decide if you wish to obtain such a contract, and SCOL will not offer you advice about these contracts. Option contracts are offered by Smart Currency Options Limited (SCOL) on an execution-only basis. The table below shows two possible outcomes: Depending on whether the contract is in Profit or Loss, you could receive money from Smart, or you pay Smart the difference on the settlement date.For example, if GBPBRL moves lower, the NDF will be in loss but the company would sell BRL locally at a better rate, the idea being to generate a net-zero (or close-to) outcome.The contract will be in Profit or Loss on the fixing date – this is to hedge against the prevailing Spot Rate on that future date.On the fixing date, the fixing rate from Brazil’s central bank is checked against the agreed rate of GBP/BRL 5.3500.You enter an NDF, agreeing to sell BRL 1million, buying GBP at a rate of GBP/BRL 5.3500.
The company will receive customer payments in 9-months’ time for BRL 10million.Due to currency restrictions, a Non-Deliverable Forward is used to lock-in an exchange rate. Currency Exchange for High Net Worth IndividualsĪ UK company selling into Brazil needs to protect the sterling-equivalent of revenues in local currency, the Brazilian Real.
0 kommentar(er)
