Spot - A spot transaction is an agreement to buy or sell a currency to be delivered and settled usually within two working days, as per the value or settlement date agreed. VFX can provide settlement to clients of up to 5 workings days to allow for BACS payments. Spot transactions are an ideal tool for businesses or private individuals that require delivery of currency within a short period of time.

Same Day/Next day - We also offer contracts to be settled on the day of trade (same-day value) and overnight (next day) settlement. VFX must receive cleared funds between 12pm and 2pm depending on the required currency. Your payment will be sent automatically, the same working day to your designated beneficiary. Please note some currencies may have longer settlement periods. This contract type if ideal for currency required on an urgent basis.

Forward Contract - A forward contract allows the buyer to lock in the rate for up to one year on a specified maturity date, effectively removing future risk from any movements in the foreign exchange market. As a risk management tool this contract provides protection against fluctuating exchange rates. Also known as hedging, this can be one of the most effective ways of managing your foreign exchange exposure. A forward contract is ideal for private individuals wishing to fix the cost of purchasing an overseas property or a business wishing to take advantage of the current market rate against future obligations. Forward contracts will usually require a deposit of between 5% and 10% deducted from the sum payable on the maturity date.

Forward Time Option (a.k.a fixed forward) - This works in exactly the same way as a standard forward contract but allows the funds to be drawn down in full or as a partial amount prior to contract maturity. The option is available within a maximum of a 3 month time window. For example, if you purchased currency on 1st February for maturity on 1st June you could request a time option three months prior to this date on 1st March, allowing you to make unlimited draw downs between these two dates. This is ideal if you need a fixed exchange rate but are unsure of the date you require funds within the time window.
VFX also has the facility to roll the maturity date of a forward by executing a swap if required. This may involve additional cost.

Limit Order - A limit order placed in the market will enable you to buy or sell a currency when the market reaches a particularly required level, higher than the current market price. We will then monitor the market and confirm your order is filled if the market reaches your specified level / target rate. You can place a time limit on the order or let the order run GTC (Good 'Til Cancelled). A limit order can also be requested on an unconfirmed alert only basis (without commitment). This type of order is worked 24 hours a day on the international market.

Stop Loss Order - A stop loss order placed in the market will enable you to buy or sell a currency at a lower level exchange rate than the current market rate. This protects you against negative movements in the rate, and limits your loss. You can place a time limit on the order or let the order run GTC (Good 'Til Cancelled). A stop loss order can also be requested on an unconfirmed alert only basis (without commitment). This type of order is worked 24 hours a day on the international market.

Disclaimer - You recognise that Stop Orders that are activated are filled at the best possible rate and are not guaranteed at the rate at which they are entered. There is therefore a risk that such orders may be executed on less advantageous terms.