Spot currency conversion - Conversion of funds from one currency into another currency, cleared on the second business day following the deal. Sooner clearance of the deal is also possible. The deal is agreed by phone under a master agreement, with subsequent written confirmation. The individual exchange rate always reflects the then prevailing situation in the interbank market, and thus the client may make benefit of the floating exchange rates during the day

Forward currency conversion - Conversion of funds from one currency into another currency, cleared later than on the second business day following the deal. The deal is agreed by phone under a master agreement, with subsequent written confirmation. The forward exchange rate always reflects the prevailing situation in the interbank market, and thus the client may make benefit of the floating exchange rates during the day.
The forward shall enable the client already today to determine a fixed exchange rate for conversion which shall be performed in the future (this exchange rate is guaranteed by the bank regardless where the actual exchange rate shall be on the date of performing the conversion), it means that the client may better plan his cash flow (hedging). It is a binding contract, and it cannot be rescinded.
Upon agreeing the deal, the client must deposit a collateral (the amount thereof depends on the type of deal), which shall serve for covering exchange losses, if any.

Currency Swap - The currency swap means a timely exchange of one currency by another one, the exchange rate being fixed, thus eliminating the exchange rate risk. In view of the fact that this is actually a deposit in one currency and a credit in another currency of the given currency pair, the exchange rate for reverse conversion reflects the interest yield and costs from the two given operations.