• American FX Forward

    A modification of the FX forward that allows continuous drawing on the nominal, as needed by the client.

Flexible

Transactions can be closed in all currencies shown in KB Exchange List.

Simple

Contact our dealers on telephone from wherever you are.

Transparent

You will receive confirmation of each executed transaction.

Professional

Benefit from services provided by a team of experienced KB professionals.

Why KB?

Hedge

Protect yourself against currency risk.

Let us help

A team of KB specialists will propose suitable strategy and assist you in the implementation.

Trade individually

Our dedicated team of dealers is available on the phone.

How to get this product?

Select a branch, leave your contact information – we will call you back.

At a branch

Leave it all up to us. Leave your contact information – we will call you back.

Call Me Back

About American FX Forward

  • Instrument for hedging currency risk
  • FX forward modification, with the possibility of continuous drawing on the agreed nominal
  • Available in all currencies of the KB Exchange List
  • Transactions are closed by telephone with our dedicated dealers
  • After each transaction, you will receive information with agreed transaction parameters

You might also like to know

  • Counterparties agree on standard parameters – currency pair, nominal, and settlement date
  • In addition, buyer of an American FX forward is also entitled to request partial exercise anytime between the initial date and the maturity date which results in reduction of outstanding nominal
  • In case the buyer does not exchange the entire nominal prior to the maturity date, the remaining amount of the nominal is automatically settled on this date

Important information for you

Risk

  • Potential profit or loss from transactions denominated in foreign currencies is affected by exchange rate fluctuations
  • In theory, neither profits nor losses are limited in any way

Example of risk

Check out this model example of risk:

  • Client enters into an American FX forward with his bank
  • Client sells EUR 1 million, buying CZK
  • Agreed exchange rate: 27.950
  • The client then enters into two exchanges, with notional amount of EUR 500,000 each
    • As of the first settlement date, the current spot exchange rate was 27.900
      • Client hedged his currency risk and also generated profit of CZK 25,000
    • As of the second settlement date, the current spot exchange rate was 28.000
      • The client incurred a loss of CZK 25,000; however, if the transaction was executed as hedging, the loss represents the cost of hedging
      • Hedging protects clients from significant exchange rate fluctuations that could result in their serious financial problems