A client (EUR exporter) sells EUR/buys CZK. Settlement of the transaction is one year from the date it is concluded.
The current market annual forward rate is 29.950.
The transaction nominal is EUR 1,000,000.
The Minimum exchange rate is 29.850, the Maximum exchange rate is 30.500.
The Lower barrier has a value of 29.500, the Upper barrier has a value of 30.500.
On the maturity date, the client sells EUR for the Maximum exchange rate if fixing of the reference exchange rate was always found in the band between the Upper and Lower barrier over the duration of the transaction.
If it was not always found in this band, the client sells the EUR for the Minimum exchange rate.
Advantages of a Forward Scoop concluded at Komerční banka:
zero initial costs
execution of exchange forwards at a substantially better rate
Forward Scoop can be arranged in all currencies stated on the Komerční banka exchange list
the transaction is always concluded by telephone with a Client transaction dealer
the client receives confirmation of the concluded transaction containing the agreed parameters of the transaction
at Komerční banka, a team of experienced professionals is at your disposal; they will propose an optimal strategy and are able to respond flexibly to developments on the market
A Forward Scoop allows you to:
appreciate your available funds on the foreign exchange market and profit from positive exchange rate developments