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We offer different foreign exchange investment tools for clients – Spot & Forward Trading, Currency Swap, and Currency Option. These investment tools are to help clients generate profits from trading currencies and hedge against the interest rate fluctuations. Our trading currencies include the USD, EUR, JPY, GBP, CHF, CAD, AUD, NZD, SGD.
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Spot Transaction |
Settle a foreign exchange transaction using the bank’s board rates in the exchange on the next day of transaction.
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Settle the foreign exchange transaction in more than two days after.
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Book a forward contract for a fixed rate and currency amount, which can be settled on any day between two pre-agreed dates.
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Fix the buy exchange rate on the day of selling the foreign exchange and vice versa.
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Non-deliverable Forward
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A type of forward transaction, which is without physical settlement. It is to hedge exposure to RMB and USD foreign exchange risks and fluctuations.
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Currency Option |
It is a type of forward transaction with pre-agreed foreign exchange rates.
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Bonds and Risk Management |
We provide clients with a diverse portfolio of bonds for investment and risk hedging purposes – offset the risks associated with the interest rate fluctuations, log in the cost of debt or asset revenue.
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Bonds can be issued by the governments, business corporations or banks in a region or in various countries. Duration can last from one month to several years, and the interest rates include fixed, floating, and structured, and to be settled on a pre-set date.
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Hedging Tools |
Currency Swap
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It is to lower the cost of borrowing or to minimize forward exchange risks by converting the debt into another currency. |
Interest Rate Swap (IRS)
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IRS is an interest rate contract whereby the trading parties exchange their interest rate obligations under the same currency with each other. According to their predictions on the interest rate movement, customers swap their floating rate obligations into fixed rate through an IRS contract, or vice versa.
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Swaption
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A Swaption gives the buyer the right, but not obligation, to enter into an interest rate swap at a pre-determined rate on an agreed future date. In return for this flexibility, customers are required to pay a premium. Swaption is actually a useful tool for hedging against interest rate risk.
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Risk Disclosure Statements
The prices of securities fluctuate, sometimes dramatically. The price of security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities.
Disclaimer
This information should not be regard as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. The information contained herein is not intended to provide professional advice and should not be relied upon in that regard. You are advised to obtain appropriate professional advice where necessary. The information is subject to change without notice.
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