Rolling Spot Contracts

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Hedging Services Rolling Spot Contracts
What is a Rolling Spot Contract?
A rolling spot contract is a contract between the client and TFI Markets that locks in the exchange rate for the exchange of two currencies on an undefined future date. The contract amount can be tailored to reflect the exact amount of exposure and the client has the option to close the contract at any time.

At the end of each business day the contract will be rolled over. Usually a rollover fee is charged, depending on the two currencies’ interest rates.

The client will initially deposit a margin which will typically be lower than the margin required for a forward contract. When the client closes the position he will have the option to either request delivery of the underlying cash flow or opt for a settlement of the resulting Profit/Loss.
Rolling Spot contracts are more flexible than Forward contracts and require less initial margin.
The client can trade electronically and over the phone on a 24 hour basis and monitor his exposure in realtime.
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