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Services / Hedging
Protect your margin from the rate you can't control.
Fix tomorrow's exchange rate today. A forward contract turns a currency cost you can only guess at into one you can put in the budget — for payments up to a year out.
What it does
An unknown cost becomes a known one.
You owe a supplier US$100,000 in three months. Today the rate is one thing; in three months it's anyone's guess. A forward contract fixes the rate now, so you know exactly what that invoice costs in your own currency before you've paid it.
Two things come with it, and we'd rather you read them here than find out later. You have to settle — a forward is a commitment, not an option. And you give up the upside: if the market moves your way, you still deal at your fixed rate.
You're buying certainty, and certainty has a price.
Say your costs are in sterling and you fix that US$100,000 at £1 = $1.35. The invoice costs you £74,074, whatever happens next.
If the rate moves to 1.28, the unhedged cost would have been £78,125 — the forward saved you £4,051.
If it moves to 1.42, the unhedged cost would have been £70,423 — the forward cost you £3,651 in benefit you didn't get.
Rates and figures are examples, not a quote. Which way the market moves is not something we predict.
Where the exposure sits
Find your pair.
EUR / USD
European suppliers and European customers.
GBP / USD
UK-facing trade.
USD / CNY
Paying mainland suppliers, or being paid by them, on dollar terms.
USD / JPY
Machinery, components, lifestyle goods.
GBP / CNY
Sterling costs against mainland supply.
EUR / CNY
Euro costs against mainland supply.
There are many more. Ask for a quote on the platform or over the phone — and if your pair isn't here, ask anyway.
Types of forward
Three shapes, depending on how certain your dates are.
01 /
Fixed
One rate, one date.
When you know exactly when you're paying.
02 /
Window
One rate, drawn down any time between two dates.
When the date could move by a few weeks.
03 /
Flexible
One rate, drawn down in parts across the life of the contract.
When you're paying the same supplier repeatedly.
Not sure which? That's a twenty-minute call. Talk to the team.
What you're committing to
The deposit, and the call.
A forward needs collateral. Two terms are worth knowing before you book one, because they decide how much cash the contract ties up.
Initial margin
The deposit taken when you book, calculated as a percentage of the contract value. It is held for the life of the contract and set by a credit assessment of your business, so the figure is yours rather than a list price. We tell you what it is before you commit.
Margin call
If the market moves against your contract before settlement, the provider may ask for more collateral to cover the position. That request is a margin call. It is cash out of the business, at a time you didn't choose.
Most providers keep this in an FAQ. It's the single most important thing to understand before you book a forward, so it's here instead.
Hedging on a rule, not a hunch
Set the rule once.
Rather than deciding trade by trade, you can set a policy: cover a fixed share of your forecast exposure, a set distance forward, on a set cadence. Cover it all at once, keep a constant ratio rolling, or layer it in over time.
You set the policy — how much, how far out, how often.
We execute against it and show you how it's tracking. The decision on how much risk to carry is yours; we don't advise on it.
What we don't offer
We don't sell options.
Some providers offer option contracts, which protect your rate while letting you benefit if the market improves. We don't — we're not licensed for them, and our partners don't provide them to us.
If that's genuinely what your treasury needs, you need a different provider, and we'll tell you on the first call rather than the sixth week.
How it works
Four steps. The deposit figure comes before you commit.
1
20-minute call.
What you're buying, in which currency, and when the money is due. We'll tell you whether a forward fits — or whether you're better off doing nothing.
2
Onboarding.
KYC/KYB through the relevant provider, plus the credit assessment that sets your deposit. We tell you that figure before you commit.
3
Book the contract.
Rate, amount and settlement date agreed and confirmed in writing.
4
Settle.
Pay on the date, at the rate you fixed. Early drawdown is possible for the original purpose.
Frequently asked
The questions worth asking before you book.
What does a forward cost me? +
Two things. A deposit held as collateral for the life of the contract, and our margin in the rate — which we disclose. The forward rate itself usually differs a little from today’s spot rate, and that gap is not our fee: it comes from the interest rate difference between the two currencies over the period you’re fixing.
What happens if I don't need the currency after all? +
You are always required to settle a forward contract. If your plans change, talk to us early — the contract can often be extended to a later date, priced at the prevailing forward points. Cancellations and amendments may cost you money.
What's a margin call? +
A request for more collateral. Your initial margin is the deposit taken when you book. If the market moves against your contract before settlement, the provider may ask for more cash to cover the position — that request is the margin call. It comes at a time you did not choose, which is why we would rather you understood it before booking than after.
Can I settle early? +
Usually yes, for the purpose the contract was booked for. A window or flexible forward is built for exactly that. Ask us before you book if early or partial settlement matters to you, because it decides which shape of contract fits.
How far ahead can I fix a rate? +
Up to a year ahead. Beyond that we would be talking about a different kind of contract, and it is not one we offer.
What if my currency can't be delivered? +
Some currencies cannot be freely delivered because of capital controls. There are instruments that fix your rate without the restricted currency moving. Whether one is available to you depends on the pair and the provider — ask us on the call.
Forward contracts — the limits. Forward contracts are provided by our regulated partners, CurrencyCloud or GC Partner, not by Blockzo Ltd, which is a business introducer. They are available up to a maximum of one year and only as payment for identifiable goods or services. They require collateral: a deposit, and further margin if the market moves against the contract, which may result in a margin call. You are always required to settle; cancellations or amendments may incur additional costs. A forward fixes your rate, so you won't benefit if the market moves in your favour. Rates move, and a quote is valid for immediate execution only. We don't advise on whether to hedge. These are fiat services and do not include any cryptoasset or digital asset service.
Talk to a person. Not a form.
Talk to a person. Not a form.
Twenty minutes and you'll know whether fixing your rate helps your business — or whether it doesn't.