020 7898 0500Overview
Spot Contracts
Spot contracts are particularly useful if you need to make an international payment in an extremely short space of time, as you can deliver the funds to a beneficiary in a timely fashion.
However, using spot contracts without leveraging your exposure with other financial products can be a high-risk strategy. Given how volatile the currency markets can be from one day to the next, it is important to think about the bigger picture.
Our dedicated team of currency risk management experts are on hand to exchange your money into a variety of different currencies, enabling you to make instant international payments.
We are passionate about working closely with our clients to deliver a proactive, solution-led service. Our team will work with you to develop a bespoke strategy for managing risk.
We provide professional currency guidance on market movements that helps our clients minimise risk when making foreign currency exchanges.
Spot Contracts vs Forward Contracts:
If you have time to spare and want to avoid a scenario where the markets move unfavourably, you could take advantage of a forward contract instead. Forward contracts enable you to reserve a forward price for buying or selling currencies on a specific date in the future. They are a ‘buy now, pay later’ agreement, meaning you avoid any currency fluctuations and know exactly how much you’ll be paying in the future.
A spot contract allows you to trade immediately at the current rate. However, a forward contract can be used to lock in a rate for payments in the future.
The ‘expected future spot rate’ is the currency exchange rate that is expected to take effect at a particular point in the future – this is based on estimations. A forward rate is the current exchange rate that has been locked in to take effect on a future date.
Case Study
Co-living collaborators
Learn how we helped a co-living provider unwind an expensive funding arrangement with spot contracts.
Managing currency exposures is key in volatile markets. Our team were able to implement a range of risk management strategies to mitigate this company’s exposures.
On the spot
Spot contracts helped move the deal quickly to completion
Maximising profit
Pouncing on the current rate helped boost profits
Ongoing support
We continued to monitor markets to dictate future strategy
What makes us different
SmartHedge
SmartHedge is our currency management platform that makes tracking exposures simpler than ever. Developed and tested to address pressing challenges UK companies face, SmartHedge offers automated solutions that allow business to spend less time pouring over spreadsheets and more time making the decisions that matter.
From reporting and valuations to cashflow forecasting and stress testing, SmartHedge helps businesses find clarity in chaotic markets.
Our Sectors
Aviation
Fashion
Film & TV
Manufacturing
Pharmaceuticals
Travel
How we work
Trading with us is simple
Follow our streamlined steps to navigate currency markets effortlessly.
Open an account
Opening an account with Smart Currency Business is simple.
Quick and easy
Complete the enquiry form below, or give us a call.
Guided process
Our team will be happy to guide you through the process.
