Before doing your first Forward
with us, you will need to sign a Framework Agreement
along with all appendices. The Framework Agreement defines the conditions and rules for carrying out derivative transactions. After signing your Framework Agreement, an Internal Payment Account (IPA)
will be automatically set up for you in order to reserve a security deposit for derivative transactions.
You can make a forward contract for a period for anywhere from six days up to 1 year from the transaction date. To hedge against liquidity risk we require a security deposit in the amount of 10% of the value of the trade. You will transfer this security deposit to your IPA, which we administer for you. When redeeming the trade, we will release the security deposit in the full amount. The amount of the security deposit and other trading requirements can be found in the Confirmation of Payment Transaction with Currency Exchange. The number of Forward contracts is not limited, nor is their amount. The trade is binding as of the date of entering into the transaction.
Exchange rate trends over time are not guaranteed, and for this reason the current exchange rate may differ from the agreed exchange rate in the Confirmation of Payment Transaction with Currency Exchange on the payout date of the trade. Nonetheless, the agreed exchange rate is binding both for the client and for the trader. This gives you the certainty of retaining a sales margin regardless of the future exchange rate trends.
The process for making a forward trade is comparable to the process of making a spot trade. If the client does not have sufficient funds in the IPA to cover the blocked amount of the trade, the trader will issue. In addition to the Confirmation of Payment Transaction with Currency Exchange, an Instruction for Outgoing Forex Payment Transaction. On the basis of this Instruction the client will transfer the required amount to the IPA to provide security for the settling of the trade. Funds covering the forward contract shall be sent by the client to the AKCENTA CZ bank account two business days prior to its settlement date. Funds must be on the AKCENTA account no later than the settlement date of the forward contract.