A forward contract locks in today's exchange rate for a payment or receipt in the future. It turns an unknown future cost into a known, fixed cost.
Quick example: You'll pay $100,000 to a US supplier in three months. With a forward, you fix the rate today at £1 = $1.35, so in three months, that $100,000 will cost you exactly £74,074, no matter what the market does in between.
With Ebury, you can choose from a wide range of product suites*, including fixed forwards, window forwards, and dynamic forwards, so you can select the product that best fits your cash flows. You can also book non-deliverable forwards for emerging market currencies that can't be physically delivered.
Note: The provision of some FX Products, such as NDFs and Dynamic Forwards, is restricted to certain jurisdictions. Please contact us to learn more about the products available in your country.