Centralfx
CentralFX understand that the security of your money is at the forefront of your mind, especially when considering financial transactions. Having the confidence to know every possible area is covered is imperative when choosing a company to work with.
CentralFX are growing to become one of the top foreign exchange players in their industry by offering clients total security of funds where CentralFX complete all client transactions through segregated client accounts held within Barclays Bank. Segregated accounts allow ring-fencing between client and company funds. By operating in this manner clients can have total confidence when sending funds to CentralFX as all funds are separated and protected.
Spot
Buying or selling on spot allows for instant purchase and delivery of currency. This price is based on today’s market rates and is essentially a “buy now, pay now” deal.Settlement is typically within 2 working days, based on how quickly the client is able to deliver the incoming funds to CentralFX. However, we are able to settle same day if required.
Forward Contracts
A client is able to guarantee a rate of exchange based on today’s market rates but for a delivery date of up to 12 months in the future.Forward contracts allow you to take delivery either of part of, or the whole amount of, the contract at any point within the agreed time frame.
This method is particularly beneficial for clients who are able to forecast their FX requirement and wish to calculate their costs accordingly.
By taking out a forward contract clients are able to lock in profits and take away the exposure that comes with movements in the currency markets.
Market Orders and Stop Loss
Clients are able to instruct their dealer of specific levels at which to buy or sell currency on their behalf. This method allows clients access to the overnight market which often has greater volatility. This in turn creates higher peaks and lower troughs which offer our clients the opportunity to purchase or sell at prices which are more appealing than those seen during standard UK trading hours.
Once the market trades through the instructed price agreed by the client, the currency is either bought or sold automatically.
A stop loss can be used to set a “worst case” scenario price. In a volatile market this offers our clients peace of mind and the confidence of knowing that they have a safety net in place should the market move aggressively against them.
Blending
A number of CentralFX clients utilise a combination of the various trading methods a practice known as “blending.” CentralFX will look at the currency exposure of our clients and look to break this overall exposure down so that 40% is traded on spot, 40% is traded on a forward and 20% is put into market orders. This method of transacting is employing a “40, 40, 20 Blend” principle.
This allows you to cost 40% of your exposure whilst still looking to benefit from any movements in your favour.
To speak with one of our experts to see which trading method would best suit you individual situation please contact us today.
CentralFX is authorised by the Financial Services Authority (FSA) under the Payment Services Regulations 2009.
As a Money Service Business (MSB) CentralFX are regulated by Her Majesty’s Revenue and Customs (HMRC) for all transactions that we execute. HMRC number is 12651660 and CentralFX is a trading name of Central Markets (London), FSA registration number: 473312.
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