Forwards is a new way to fix the FX cost of future cross-border payments, inside the Sokin platform you already use.
You agree a price with an overseas supplier today. By the time you pay, the exchange rate has moved, and the number in your forecast is no longer the number leaving your account. An overseas supplier invoice you budgeted £500,000 to pay could cost an extra £10,000 if exchange-rate movements increase its GBP cost by 2%.
Forwards fixes that. Lock a rate today on payments due up to 12 months ahead, with no upfront deposit and no margin call*. The rate you lock at booking is the rate you pay on the day, and your Sokin wallets settle automatically.
Keep cash in the business
Businesses often face a trade-off: tie up a slice of the contract value as an upfront deposit, or face margin calls when the market moves. For credit-approved clients, Forwards removes that trade-off. Your agreed credit headroom covers adverse exchange-rate movements up to an agreed limit, and a cash call only applies to any excess once that headroom is used up.
How Forwards works
- Request a quote. In Forward Contracts, choose your currency pair, amount and settlement date. Upon launch, Forwards covers G10 currencies, with others available on request.
- Review and book. You’ll see a live rate for a defined window. Book it, and the rate is locked.
- Settle automatically. On the value date, your wallets are debited and credited at the locked rate. There’s no drawdown to instruct, no new counterparty and no ISDA to manage.
What Forwards is for
Forwards provide certainty in managing foreign exchange exposure for future payments and receivables. Each forward is tied to a real payment or receivable and settles at the rate you locked.
Common uses include:
- Supplier invoices and budgets: the cost you agree is the cost you pay, so FX comes out of your variance line
- Overseas payroll: know the home-currency cost of each cycle in advance
- Foreign-currency income: lock the home-currency value of expected receipts
Get started
Forwards is built for established businesses with significant and regular cross-border payments. To qualify, a company must be able to provide financial information and approved through onboarding and credit review. Existing customers can speak to their account manager, or Explore Forwards →
* Forwards cannot be used for investment or speculation. They may only be used to facilitate payments for identifiable goods, services. No upfront deposit is subject to onboarding, credit approval and Sokin’s compliance and risk requirements. Please refer to Terms and Conditions for further information.