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For businesses that trade overseas in different currencies, currency volatility and how to mitigate that risk is an important consideration. We offer a range of commercial and deliverable foreign exchange and FX-related payment services, along with a variety of FX derivative products on either an advised or execution-only basis for professional clients only.
Spot FX
A spot FX trade is a straightforward foreign currency exchange. Using real-time exchange rates, Monex Canada provides same-day, next-day, spot and foreign exchange transactions across a range of major, minor and exotic currencies.
FX forwards
Our FX forward contracts offer an effective solution for mitigating currency risk. Providing both certainty and flexibility for currency requirements, forward contracts can be used to help protect profit margins, cash flow and your bottom line from currency fluctuations. By fixing a price against a budgeted rate, you can help lower business costs on imports and exports, and secure a specified exchange rate for future payments in a foreign currency.
Market orders
A market order is an order to buy/sell a specified amount of currency at a predetermined rate of exchange not currently achievable. This allows you to get on with your day job and take advantage of market moves without having to keep track of the markets all day long. It also allows you to take advantage of any overnight volatility or illiquidity that you may not necessarily see in normal trading hours.
Limit orders → Typically an order at a target rate better than where the market is currently trading.
A stop loss order → Typically an order to instruct a trade at a predetermined “worst case scenario” rate, to prevent further losses if the markets start to move against you.
Margin credit facilities
As part of our corporate foreign exchange offering, Monex can offer attractive, flexible margin credit facilities to accommodate deliverable FX hedging for up to 5 years. Subject to creditworthiness, these margin facilities may lower or remove the requirement to place initial and/or variation margin with us that would otherwise be required against any forward trades.
Pre-authorized debit (PADs)
Pre-authorized debits (PADs) offer a convenient, flexible and easy way to make payments automatically and settle trades. Clients can choose to allow automatic payments, either on a fixed date of every month or whenever a trade is initiated*.
*Monex Canada can only initiate a PAD if certain conditions are met. This service is only available to residents of Canada, the bank account being debited must be based in Canada and the currency debit should be in Canadian dollars or US dollars only.
FX hedging solutions
FX risk can be transactional, translational or economic in nature, and this means that each company may benefit from a tailored FX risk management and hedging policy. At Monex, we can assist with creating and monitoring this policy as markets and businesses evolve over time. Flexibility is key, and our dedicated team can assist by analysing your FX exposure and creating a portfolio of hedging instruments to diversify your approach. Once implemented, we can regularly review the performance of your hedging programme to help it remain aligned with your key objectives and to ensure it is performing as intended.
Whether you want to protect certain rates, participate in favourable moves or out-perform the market, we are able to offer strategic support to companies throughout every step of the journey. Please get in touch with your Monex contact to speak with our derivatives structuring team to discuss how we can help you.
FX advisory
Our team of dedicated traders can structure suitable hedging solutions which reflect your commercial objectives, thus, enabling you to take control of the currency exposures on your balance sheet and to hedge your currency risk against future movements in exchange rates. We facilitate a range of products including deliverable and non-deliverable FX forwards, swaps and options. Together with our award-winning analysis team and FX structurers we will engage with you to develop innovative risk management strategies.
Disclaimer: Monex Canada Inc exclusively offers over-the-counter derivatives contracts, such as options to non-Ontario Qualified Parties (in Alberta, BC, Manitoba, New Brunswick, Nova Scotia, Quebec, and Saskatchewan) and Permitted Clients in Ontario. If you do not meet the criteria as a Qualified Party or Permitted Client, you should disregard the information contained herein and will not be able to execute the strategy outlined with Monex Canada. Please be aware that option contracts are intricate financial instruments and carry the risk of potentially losing an amount greater than the initial margin or variation margin deposited with Monex Canada Inc.