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Forward FX Transaction
 
Refers to the foreign exchange transaction in which both sides of transaction(bank and customer) pre-agreed the transaction conditions such as currency, amount, exchange rates, and delivery time etc., and make the delivery of transaction on the due date. 

FX Optional Forward Deal
Refers to the foreign exchange transaction in which the customer can make an delivery according to the specific exchange rate on any working day within a certain period in the future, which is forward fx transaction with an alternative delivery date.  

Benefits
  • ·
    Avoid the risks of exchange rate fluctuation
  • ·
    A tool that can be used for foreign exchange speculation
Potential Risk
The foreign exchange market is extremely volatile, the spot rate at maturity may be better than the rate pre-locked, it may bring you an opportunity cost.
Note:
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.