Cash, Tom and Spot Foreign Exchange
You can buy or sell currencies with the delivery of the currencies on the same day, Cash (T*) or tomorrow (T+1) or spot (T+2).

*Transaction done today i.e. Transaction + 1 business day or Transaction + 2 business days

Forward Foreign Exchange (FX)
Enter into a FX Forward Contract to buy or sell a particular currency at an agreed date in the future, at a price agreed now. This enables you to lock in a foreign exchange rate now for a future payment (or receipt) denominated in a different currency.

Features and Benefits:

• Exchange of currencies takes place at the forward date at the rate agreed on the trade date
• Dates can be matched exactly with underlying exposures at the trade date of the contract
• Off-balance sheet Applications
• Enables you to hedge future receivables or payables from one currency to another.

Foreign Exchange Options (FXO)

Enter into a FX option contract to have the right, but not the obligation to buy or sell a currency at an agreed future date, at a pre-determined price, in exchange for a "premium" fee. However, you can walk away from the contract if the market has moved in your favour.

Features and Benefits:

• Hedging tool for currency exchange exposures
• Dates can be matched exactly with underlying exposures at the trade date of the contract
• Off-balance sheet Applications
• Enables you to hedge future receivables or payables from one currency to another.
• Premium is payable on the second business day after the day on which the option is granted.
• Since you have the right and not obligation to purchase/sell at the strike price, only the worst amount payable/receivable is known in advance.
• While protection against downside risk is obtained, you can benefit to an unlimited extent from any favorable movement in the underlying currency.
• If you buy a vanilla option, no credit lines are required (after receipt of premium). Credit lines are required if you require a Structured FXO. (A customized combination of two or more vanilla FXO).

Forward Rate Agreement (FRA)

Enter in to a contract to exchange a fixed interest payment for a floating interest payment in respect of a specified interest period. You can use it as your hedging tool to synthetically convert a floating interest rate into a fixed interest rate on a loan (or vice versa).

Features and Benefits:

• No exchange of principal.
• One net interest payment between parties, settled at the start of the interest period.
• Can be priced over exact dates to suit the customer's needs
• Off-balance sheet Applications.
• No fee or premium.

Interest Rate Swap (IRS)

Enter in to a contract to exchange (or swap) of floating-rate based interest payments for fixed rate payments (or vice versa). You can use it as your hedging tool to synthetically exchange the uncertainty of floating interest rate payments (or receipts) for the certainty of fixed interest rate payments (or receipts).

Features and Benefits:

• All payments are denominated in the same currency.
• No exchange of principal.
• Interest payments between parties are normally netted.
• Off-balance sheet Applications.
• No fee or premium.

Structured Deposits and Notes

Alternative to a regular fixed deposit, with a possibility of giving you a significantly higher yield. It is basically a term deposit structure with embedded FXO and an attractive investment opportunity to companies. We offer basic types of structured deposits - Principal Protected Currency Deposit (PPCD) and (non-principal protected) Premium Currency Investment (PCI) to advance type like Currency Basket Enhanced Deposit (CUBE) and Range Accrual.

Features and Benefits:

• Tenor can range from one month to one Year.
• Less risky than direct investment in currencies.
• Interest rates earnings can be customised based on your risk appetite, tenor & currency selection.
• Possibility to achieve above conventional savings rates using structured products.
• Suitable for SME clients that have cash flows in multiple currencies.
• With PPCD, the principal is protected at maturity, plus with a guaranteed Yield depending on the currency and the range of reference you have decided. It allows you to take a range view on the currency pair. If the currency actually trades in that range, you will enjoy a higher return on you deposit. However, in case the range is broken anytime during the period of the deposit, you will still get a guaranteed return on your deposit.
• No conversion involved in the product, hence, there is no exchange risk.