Have you received an invoice with a monthly maturity and do not wish to rely on the rate remaining unchanged? Are you expecting an invoice from a foreign country and know that the exchange rate is presently favourable for you? Hedge against a rate risk!

• Futures are foreign currency exchange transactions in which the dates of a trade and its settlement are separated by more than two working days.

• They are designed for clients who desire to be insured against exchange-rate risks.

The Citfin - Finanční trhy company offers two types of futures, i.e. swaps and forwards:

Swap - sale or purchase of one currency for another currency with its subsequent re-purchase or re-sale after a certain period at a pre-agreed exchange rate. Combinations of spot and forward transactions are used for overcoming a temporary shortage of liquidity in one currency, while there is surplus liquidity in another currency.

Forward - purchase or sale of foreign currency for a current finite agreed exchange rate, with the condition that delivery and payment shall be made within an agreed deadline (as short as three days, but usually much longer).

The Forward rate - is affected by two main factors:

1) the current exchange rate at the time that the exchange trade is concluded

2) pips - these express the difference in interest rates of sold and purchased currency during the period for which the forward trade is concluded. Pip points are adjusted for each commenced month of the duration of a forward foreign exchange trade.

Futures involve the effecting of non-cash purchases and sales of foreign currency funds in CZK, and in the following foreign currencies:

For futures the minimum amount of an exchange trade between EUR and USD currencies is set at EUR 10,000 or USD 10,000; for other currencies it is the equivalent of EUR 20,000.

Futures may be implemented as a "cross", when a foreign currency is purchased and sold without the participation of CZK in the exchange trade.

Deals in futures can be arranged as a standard procedure through our Client's Dealing Department.

All client requests are processed in an individual manner, taking into account the current needs of each particular client.

Product Features:

• Short forward, without a deposit (based on the condition of settlement of the transaction within 10-working days)

• A small percentage of the required deposit for standard futures (with the condition of settlement of the transaction within a period longer than 10 working days)

• Insurance against exchange-rate risks

• Low limits for concluding forward trades, starting at EUR 10,000 or USD 10,000.

• Time saving - it is no longer requisite to monitor trends in the exchange rate

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This product is provided by Citfin - Finanční trhy, a.s.