Conversion of funds between two different currencies settled up later than the second working day after deal conclusion. Deal is concluded by telephone pursuant to the framework agreement, with the following written confirmation. Forward rate always reflects the current situation on the interbank market and therefore the client has a possibility to benefit from its volatility during the day.
Forward enables the client to fix exchange rate for conversion, which will be executed in the future (the rate is guaranteed by the bank regardless of the current rate on the day of conversion execution); therefore it enables the client to plan his/her cash flow (hedging). It is a binding agreement and it cannot be reneged.
When concluding a deal, the client is obliged to deposit collateral (amount depends on trade type) that serves to cover possible exchange rate loss.

Variations
- floating forward (instead of a particular date conversion, client concludes a fixed exchange rate for conversion made someday in the future, e.g. during the week, what gives the client more possibilities in his/her cash flow planning (hedging).
- non-delivery forward (on forward expiration day, no real conversion is made, only the difference between concluded and current exchange rate is cleared, so the client can benefit from interbank rates volatility)

Usage
- conversion of funds from one account in one currency to another account in another currency, funds conversion of incoming foreign payment, purchase of funds for outgoing foreign payment, funds conversion of provided foreign currency loan, purchase of funds for payment of foreign currency loan principal or interest.

Conditions
- signing Treasury Business Conditions,
- minimum volume of deal equivalent to 30 000 EUR - sufficient amount of funds for collateral
- deal concluded between 8.30am and 4.00pm each working day