- Investment Service Providing Terms (valid from 01-06-2018)
Currency Risk Management
We offer individual solutions to manage currency risks by concluding foreign exchange forward transactions.
Foreign Exchange Forward Transactions
Foreign exchange forward transactions allow you to manage the risk of currency fluctuations, i.e. by concluding such a transaction you can fix the exchange rate in advance and know exactly how much one currency you will receive for another on the agreed settlement date.
Relevant if You:
- Buy or sell goods / services in foreign currency.
- Have liabilities in foreign currency.
- Have investments or other assets in foreign currency.
- You know in advance what amount of one currency you will get for another.
- It facilitates cash flow planning.
- There is no need to follow the exchange rate changes in the market.
- No additional commission fees.
How forward transaction works
Forward currency exchange rate depends on the currency pair and the duration of the transaction. This rate may be more favourable or worse than spot rate. On the settlement date the currency is exchanged at a pre-agreed exchange rate - the bank debits the sold currency from your account and credits the currency you buy. By making this type of transaction, you take the risk that the exchange rate on the market may have changed on the settlement day in the direction that is not favourable to you.
- The transaction requires to have an account with Šiaulių Bankas.
- The Derivative Financial Instrument Agreement to be signed with the Bank.
- Forward transactions require a collateral or a limit. The collateral amount is determined on case-by-case basis and depends on the amount and terms of transactions.
- Legal entities should have an international identifier code (LEI).
- Transactions may last up to 6 months.
Where to apply?
Important information and documents
Investment Service Providing Terms
General conditions of derivatives transactions
- General conditions of derivatives transactions (valid from 10-06-2019)
- Key-infromation-document - Non deliverable forward EURUSD (valid from 2021-06-30)
- Key-infromation-document - Forward currency exchange agreement EURUSD (valid from 2021-06-30)
This notification is informational in nature, so it is not and should not be interpreted as investment advice, consultation, investment investigation or suggestion (offer) to acquire a specific financial instrument. The Bank by submitting this information did not take into account your knowledge and experience with a particular financial instrument, in the absence of information about your investment objectives and financial capacity in taking risks.