firstforex

When dealing with FirstForex there are three types of Foreign Exchange contract that you can deal with. Your Personal Account Manager will explain the difference between each one and is at hand to help you decide on the best contract for you. The contracts are as follows:

This is the purchase or sale of currency two days forward and is typically used when funds are required within the next seven to ten days. Deals can be completed and transacted for the same or next day payment however; these are dependent on the time of the transaction and our receipt of funds.
This is the purchase or sale of currency for settlement on a future date at a rate agreed on the day of the deal. This allows you to fix the price of your currency purchase or sale to be used against a future commitment, the staged payments of a property purchase or for the delivery of goods or other services. If you are selling goods or property this is also a good way to lock in the exchange rate thus avoiding currency risk through fluctuations. A margin deposit is required against all forward transactions.(see below)
This product is for clients who need to purchase or sell currencies within a fixed time frame, i.e. between June & September, the price for the purchase/sale is set before the beginning of the term but the currency trade can be executed at any time between the start date and the end date. This gives flexibility whilst at the same time negating the currency risk.
Forward transactions require a deposit of 10% of the value of the transaction to be paid on the day the forward price is agreed. On the settlement date the balance of 90% will need to be paid before the currency funds can be transferred. In some cases should the exchange rate move adversely against the trade resulting in the original margin become insufficient to cover the risk incurred by the company, a further top-up margin of a further 5% may be required.
This is the agreed date on which your cleared funds have been paid into the FirstForex client account and on which date the company, having verified receipt of those funds arranges the currency payment to the recipient account instructed by you.