Forward Contracts

With forward agreements to purchase or sale a certain asset at a pre-agreed price at a later date, our customers are able to manage exchange rate risks which may arise as a result of future exchange rate movements.

Although forward transactions provide protection, they are binding for both parties, since the transaction cannot be reversed. The transaction brings the obligation to be realized independently of the market price on the maturity date.

Forward contracts, which are one of the products frequently used in managing exchange rate risk, are a suitable derivative instrument for companies which import and export and/or do not want to bear exchange rate risk in their balance sheet. On the other hand, forward agreements involve price risk.

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