Forwards

Forward Contracts are an effective way to hedge against foreign exchange fluctuations by locking in the current FX rate and then settling that rate and amount at a future date. There are two types of forward agreements: Closed Forwards and Open Forwards.

• A Closed Forward lets you lock in the current exchange rate, and receive foreign currency funds on a specified future date (also known as the maturity date). This type of contract requires you to complete the transaction on the date it expires (the Maturity Date) at the agreed rate of exchange. A Closed Forward is settled in its entirety on the maturity date.
• With an Open Forward, you also lock in the current exchange rate for a future date value and settlement, but unlike a Closed Forward, you can draw down the funds at any time within the specified period. You do not need to wait until the maturity date. All the drawdowns are processed at the agreed-upon rate. The trade can be settled either in full or in part as long as the full amount has been paid by the maturity date.

The following identifiers are created for each completed forward:

• The ordNum is the alpha-numeric transaction identifier. It is the same as the deal number except that it is prefixed with 'OFD' (i.e. OFD40123456).
• The forwardId/paymentInstructionId is the numeric forward identifier (i.e. 1386511).
• The quoteId is the identifier of the forward quote rate resource (i.e. cc2999ba7eb84e19a158a8bf0f21296e).

These three endpoints are the key elements of the Forwards workflow.

1. Request Forward Quote
2. Book Forward Quote
3. Complete Order

The other two endpoints are optional to get more information:

• Retrieve Forward Quote
• Forward Instructions