Spot / Contracts
Deliverable spot FX contracts are used by businesses and individuals to make international payments, settle trade transactions, and manage foreign currency risks. Unlike Hedging and forward contracts, a deliverable spot FX contract requires the physical delivery of the underlying currency on a specific settlement date (typically two business days are the trade date). While this gives for less flexibility it does allow businesses and individuals to execute trades quickly and capitalise on positive market movements.
These deliverable spot FX contracts are traded on the interbank market, where financial institutions and large corporations trade with each other directly or through electronic trading platforms. This market in particular is primed to allow the quick execution of trades with the most commonly paired currencies being GBP / EUR / USD / JPY / CHF. The best way to use a deliverable spot FX contract is to lock in a specific exchange rate for Today + 2, allowing exchange of two currencies immediately; as always, our team at Sequoia FX will guide you through the process to ensure you’re kept fully informed of the options available to you.
Forward Contracts
Forward contracts are particularly useful for investors and businesses that need to manage their exposure to price fluctuations in the future. For example, a company that imports goods from another country may use forward contracts to lock in a favourable exchange rate and protect against currency fluctuations.
Risk Management
Risk management in FX involves identifying, assessing, and mitigating the potential risks associated with currency fluctuations. These currency fluctuations are the result of volatility and uncertainty in exchange rates which can impact the profitability, and financial stability, of businesses and individuals involved in international transactions.
Sequoia FX deploys effective risk management aiming to minimise the adverse effects of currency fluctuations and financial performance by implementing strategies to hedge (offsetting positions in the FX market to mitigate risk) or manage exposure. Our risk management strategies monitor and analyse geopolitical factors around the globe to assess the macroeconomics underpinning any currency exchange to effective manage our clients’ FX risk profile and ensure the best possible outcomes. Risk management is provided by Sequoia FX and not Currencycloud.
Currencycloud is only the liquidity, regulatory and technology provider to Sequoia FX, they do not undertake any risk management activities on our behalf.
Hedging
Given the volatility of international currency markets, many traders aim to manage their risk using strategies such as Hedging, designed to reduce, or offset potential losses from adverse movements in currency prices by using forward contracts. By adopting these favourable positions in the currency market traders are able to de-risk their investments however, there are additional costs involved in this strategy.
With this in mind, our consultants at Sequoia FX help businesses to execute the Hedging strategy that is right for them; considering geo-political events, market trends, fluctuations in weaker currencies, and, where appropriate, the use of spot contracts to facilitate trades quickly and easily. Hedging is a crucial tool to ensure our clients get the maximum possible benefit from international currency markets, without taking on unnecessary risk. Ultimately however, risk management strategies need to be determined on a case-by-case basis ensuring that an individual’s or business’ risk profile is fully aligned with their chosen risk management strategy.
Payment Services
We believe, when it comes to handling our clients’ finances, transparency is what matters most. As such every client, regardless of size, is given a Collection Account facility enabling them to receive funds into an account in their own name for all GBP, EUR, USD, CAD, & SGD trades. For any trades where a Collection Account Facility isn’t possible, we use SWIFT Codes to execute currency trades to 33 different countries, giving our customers peace of mind and full transparency throughout.
In addition to one-off currency trade solutions, we also offer mass payment options with an in-built tracking system, not only taking the headache out of mass payments, but adding peace of mind.
Payroll Services
Take the stress out of payroll and allow our in-house team to manage all payments on your behalf. With years of experience combined with new FinTech platforms, we can manage all payments your business needs to make, whether it be 10 employees or 10,000.
Currencycloud is only the liquidity, regulatory and technology provider to Sequoia FX, they do not undertake any Payroll activities on our behalf.
