Ebury (2025)

Important Information

Dynamic Forward products, as described in this Information Sheet, are a type of Forward Contract as defined in the terms and conditions between you and Ebury Partners UK Limited (the "Terms"). Capitalised terms which are used but not defined herein are defined in the Terms.

Disclaimer

Information contained in this Information Sheet, including examples and scenarios, is for information purposes only and is not part of your contractual relationship with Ebury.

You should not act or refrain from acting on the basis of the content included in this Information Sheet. You should not acquire any of the products described in this Information Sheet if you do not fully understand their characteristics and risks or how their use will affect you or your business in the best-case and worst-case scenarios. To the extent permitted by law, we disclaim all liability for actions you take or fail to take based on information included in the Information Sheet.

This Information Sheet includes factual information only and does not constitute general advice. It is not a Product Disclosure Statement under any regulation or similar provincial corporate statutes. It is intended for corporate, partnership and/or trust clients only. If you are not a corporate, a partnership or a trust client, you cannot use this Information Sheet or acquire the products described in it.

Ebury can solely determine the meaning of undefined terms in this Information Sheet, with Reference to what it reasonably believes are established UK market practices.

Content

Dynamic Forwards - Introduction
Dynamic Forward with Partial Participation

Triggered Participation

Dynamic Forward with Triggered Participation
Dynamic Forward with Triggered Participation Plus
Dynamic Forward with Triggered Reset
Dynamic Forward with Triggered Reset Plus
Dynamic Forward with Partial Triggered Participation
Dynamic Forward with Partial Triggered Participation Plus
Bonus Dynamic Forward with Triggered Participation
Bonus Dynamic Forward with Triggered Participation Plus
Dynamic Forward Plus

Capped Participation

Dynamic Forward with Capped Participation
Dynamic Forward with Capped Participation Plus

Boosted Forward

Boosted Dynamic Forward
Boosted Dynamic Forward Reset Plus

Glossary

Glossary

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Dynamic Forward - Introduction

What is a Dynamic Forward?

Introduction

A Dynamic Forward is a financial contract entered into by two parties; a buyer and a seller. A Dynamic Forward offers the benefits of a fixed Forward contract, while allowing the customer to benefit from favourable market movements under certain circumstances.

Depending on where the market is at the Maturity Date of the Dynamic Forward will determine the rate that the customer will receive on the delivery of the currency. The customer must always deliver currency at an applicable rate on the Maturity Date. The currency will be delivered to the client two Business Days after Maturity Date of the Dynamic Forward.

There are various types of Dynamic Forwards that provide the customer with different outcomes depending on the Exchange Rate on the Maturity Date of the Dynamic Forward.

Advantages

Dynamic Forwards give you flexibility when hedging foreign currency exposures.
Dynamic Forwards can provide you with protection via a Protection Rate, but also allow you to benefit should the Exchange Rate move in your favour in certain circumstances. This means your outcome may be more favourable than a fixed Forward Contract.
Dynamic Forwards can provide you with a protection rate like a fixed Forward Contract. This means that you know the maximum amount you will have to pay in the future so you will be better able to manage your cash flows and costs.
Dynamic Forwards can be used to produce hedging strategies that are tailored to fit your exposure, currency forecast and risk level.

Disadvantages

When you enter into a Dynamic Forward with a permanent Protection Rate, the Protection Rate may be less favourable than the prevailing Forward or spot rate.
When you enter into a Dynamic Forward with a Protection Rate, your participation in favourable Exchange Rate movements may be limited.
If you use a Dynamic Forward to cover an obligation that ceases to exist or changes prior to the Maturity Date, then the contract may need to be closed out or, at our discretion, rolled over. This means you may incur a loss or be required to take out further currency protection to cover the changed exposure.
Depending on the Dynamic Forward and the credit terms with Ebury, you may be required, on short notice, to respond to a margin call and provide additional funds to cover your position.

Dynamic Forward with Partial Participation

Hedging import related payables Forward

Product Description

The Dynamic Forward with Partial Participation protects you by providing you with a Protection Rate for your currency exposure, like a Fixed Forward Contract. However, it allows you to participate in any favourable Exchange Rate move for a predefined percentage of the hedged notional value.

Possible Scenarios

Scenario 1: If the Exchange Rate at Maturity is below the Protection Rate, the client must deliver at the Protection Rate.

Scenario 2: If the Exchange Rate is more favourable than the Protection Rate at Maturity. The Dynamic Forward delivers a predetermined percentage of the Notional Amount at the agreed Protection Rate but also delivers the remaining predetermined participation percentage at the prevailing Spot Rate.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
The client has partial benefit (percentage) if the Exchange Rate moves in their favour.

Disadvantages

If the Exchange Rate trades below the Protection Rate at Maturity, the client would have achieved a more favourable rate using a Fixed Forward Contract.
The client can only partially benefit from favourable Exchange Rate movements.
If the Exchange Rate moves unfavourably Ebury may make a Margin Call to cover the out-the-money position.

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time. The company uses a calculation rate of 1.2200 for the current fiscal year.

The client seeks full protection but at the same time believes that there is a chance that the market may move favourably.

In consultation with the client, the following Dynamic Forward with Partial Participation is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Protection Rate = 1.2100

Participation % = 50%

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.1900 at Maturity, which is below the Protection Rate. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the Protection Rate of 1.2100.

Scenario 2: The GBP/USD Exchange Rate is trading at 1.3100 at Maturity. Therefore, the Dynamic Forward delivers USD 500,000 (50%) at 1.1900 and USD 500,000 (50%) at 1.3100. In this scenario, the company realizes an average conversion rate of 1.2580.

** Calculation = 1,000,000 USD/ (500,000 USD/ 1.2100) + (500,000 USD/ 1.3100) = 1.2580

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Dynamic Forward with Triggered Participation

Hedging import related payables

Product Description

The Dynamic Forward with Triggered Participation enables you to fix a Protection Rate for your currency exposure for a predetermined date in the future. You also set a Trigger Rate and, if the Spot Rate trades at or above the Trigger Rate at any time during the Observation Period, you must deliver on the Dynamic Forward hedge at the Protection Rate. If the Spot Rate has not traded at or above the Trigger Rate during the Observation Period, and the Spot Rate at Maturity is above the Protection Rate, you must deliver the Dynamic Forward at the prevailing Spot Rate.

*Observation Period can be Constantly Observed, Windowed or At Maturity

Possible Scenarios

Scenario 1: If the Exchange Rate at Maturity is below the Protection Rate, the client must deliver the Dynamic Forward for the Notional Amount at the Protection Rate.

Scenario 2: If the Exchange Rate at Maturity is above the Protection Rate and has not traded at or above the Trigger Rate during the Observation Period, the client must deliver the Dynamic Forward for the Notional Amount at the prevailing Spot Rate.

Scenario 3: If the Exchange Rate has traded at or above the Trigger Rate at Maturity or during the Observation Period, the client must deliver the Dynamic Forward for the Notional Amount at the Protection Rate.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
The client can benefit from favourable currency movement up to but not including the Trigger Rate.

Disadvantages

If the Exchange Rate trades at or above the Trigger Rate at anytime during the Observation Period, the Dynamic Forward delivers at the Protection Rate. In this case, the client would have achieved a more favourable rate using a fixed Forward Contract.
If the Exchange Rate at Maturity is below the Protection Rate, the client would also have achieved a more favourable rate using a Fixed Forward Contract.
If the Exchange Rate moves unfavourably Ebury may make a Margin Call to cover the out-the-money position

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time. The company uses a calculation rate of 1.2100 for the current fiscal year.

The client is seeking full protection but at the same time believes that there is a chance that the market may develop favourably to the GBP/USD 1.2500 average forecast of the major banks.

In consultation with the client, the following Dynamic Forward with Triggered Participation is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Protection Rate = 1.2200

Trigger Rate = 1.2665

Observation Period = at Maturity

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.2100 at Maturity, which is below the Protection Rate of 1.2200. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the Protection Rate of 1.2200.

Scenario 2: The GBP/USD Exchange Rate is trading at 1.2600 at Maturity. The Exchange Rate has not traded at or above the Trigger Rate during the Observation Period. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the prevailing Spot Rate of 1.2600. The client was able to take full advantage of the positive Exchange Rate development.

Scenario 3: The GBP/USD Exchange Rate is trading at 1.2800 at Maturity. The Exchange Rate is now trading, or has traded during the Observation Period above the Trigger Rate, therefore the Dynamic Forward delivers the Notional Amount of USD 1,000,000 at the Protection Rate of 1.2200.

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Dynamic Forward with Triggered Participation Plus

Hedging import related payables

Product Description

The Dynamic Forward with Triggered Participation Plus enables you to fix an enhanced Protection Rate for your currency exposure for a predetermined date in the future. You also set a Trigger Rate, if the Exchange Rate trades at or above the Trigger Rate at any time during the Observation Period, you must deliver on the Dynamic Forward for the higher Plus Notional Amount at the enhanced Protection Rate at Maturity. If the Exchange Rate has not traded at or above the Trigger Rate during the Observation Period, and the Exchange Rate at Maturity is above the enhanced Protection Rate, you must deliver the Dynamic Forward for the Notional Amount at the prevailing Spot Rate at Maturity.

*Observation Period can be Constantly Observed, Windowed or At Maturity

Possible Scenarios

Scenario 1: If the Exchange Rate at Maturity is below the enhanced Protection Rate and has not traded at or above the Trigger Rate during the Observation Period, the client must deliver the Dynamic Forward for the Notional Amount at the enhanced Protection Rate.

Scenario 2: If the Exchange Rate at Maturity is above the enhanced Protection Rate and has not traded at or above the Trigger Rate during the Observation Period, the client must deliver the Dynamic Forward for the Notional Amount at the prevailing Spot Rate.

Scenario 3: If the Exchange Rate has traded at or above the Trigger Rate at Maturity or during the Observation Period, the client must deliver the Dynamic Forward for the higher Plus Notional Amount at the enhanced Protection Rate.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
The client can benefit from favourable currency movement up to but not including the Trigger Rate.

Disadvantages

If the Exchange Rate trades at or above the Trigger Rate at anytime during a specified Observation Period, the Dynamic Forward delivers the higher Plus Notional Amount at the enhanced Protection Rate. In this case, the client would have achieved a more favourable rate using a fixed Forward Contract.
If the Exchange Rate at Maturity is below the enhanced Protection Rate, the client would also have achieved a more favourable rate using a fixed Forward Contract.
If the Exchange Rate moves unfavourably Ebury may make a Margin Call to cover the out-the-money position.

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time. The company uses a calculation rate of 1.2400 for the current fiscal year.

The client is seeking guaranteed protection but at the same time believes that there is a chance that the market may develop favourably to the GBP/USD 1.2600 average forecast of the major banks.

In consultation with the client, the following Dynamic Forward with Triggered Participation Plus is established.

Spot Reference= 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Plus Notional Amount = $2,000,000

Protection Rate = 1.2400

Trigger Rate = 1.2665

Observation Period = at Maturity

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.2200 at Maturity, which is below the enhanced Protection Rate of 1.2400. Therefore, the Dynamic delivers the Notional Amount of 1,000,000 USD at the enhanced Protection Rate of 1.2400.

Scenario 3: The GBP/USD Exchange Rate is trading at 1.2800 at Maturity. The Exchange Rate is now trading or has traded during the Observation Period above the Trigger Rate, therefore the Dynamic Forward delivers the higher Plus Notional Amount of USD 2,000,000 at the enhanced Protection Rate of 1.2400.

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Dynamic Forward with Triggered Reset

Hedging import related payables

Product Description

The Dynamic Forward with Triggered Reset enables you to fix a Protection Rate for your currency exposure for a predetermined date in the future. You also set Trigger and Reset Rates. If the Spot Rate trades at or above the Trigger Rate at any time during the Observation Period, you must deliver on the Dynamic Forward at the Reset Rate. If the Spot Rate has not traded at or above the Trigger Rate at any time during the Observation Period, and the Spot Rate at Maturity is above the Protection Rate, you must deliver the Dynamic Forward at the prevailing Spot Rate.

*Observation Period can be Constantly Observed, Windowed or At Maturity

Possible Scenarios

Scenario 1: If the Exchange Rate at Maturity is below the Protection Rate and has not traded at or above the Trigger Rate during the Observation Period, the the Dynamic Forward delivers for the Notional Amount at the Protection Rate.

Scenario 3: If the Exchange Rate has traded at or above the Trigger Rate during the Observation Period, the client must deliver the Dynamic Forward for the Notional Amount at the Reset Rate.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
The client can benefit from favourable currency movement up to but not including the Trigger Rate.

Disadvantages

If the Exchange Rate trades at or above the Trigger Rate at anytime during the Observation Period, the rate converts to the Reset Rate. In this case, the client may have achieved a more favourable rate using a fixed Forward Contract.
If the Exchange Rate at Maturity is below the Protection Rate, the client would also have achieved a more favourable rate using a fixed Forward Contract.
If the Exchange Rate moves unfavourably Ebury may make a Margin Call to cover the out-the-money position.

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time. The company uses a calculation rate of 1.2100 for the current fiscal year.

The client is seeking full protection but at the same time believes that there is a chance that the market may develop favourably to the GBP/USD 1.2500 average forecast of the major banks.

In consultation with the client, the following Dynamic Forward with Triggered Reset is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Protection Rate = 1.2200

Trigger Rate = 1.2600

Reset Rate = 1.2300

Observation Period = at Maturity

Example Scenarios

Scenario 2: The GBP/USD Exchange Rate is trading at 1.250 at Maturity. The Exchange Rate has not traded at or above the Trigger Rate during the Observation Period. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the prevailing Spot Rate of 1.2500. The client was able to take full advantage of the positive Exchange Rate development.

Scenario 3: The GBP/USD Exchange Rate is trading at 1.2700 at Maturity. The Exchange Rate is now trading, or has traded during the Observation Period above the Trigger Rate, therefore the Dynamic Forward delivers the Notional Amount of USD 1,000,000 at the Reset Rate of 1.2300.

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Dynamic Forward with Triggered Reset Plus

Hedging import related payables

Product Description

The Dynamic Forward with Triggered Reset Plus enables you to fix an enhanced Protection Rate for your currency exposure for a predetermined date in the future. You also set Trigger and Reset Rates. If the Exchange Rate trades at or above the Trigger Rate at any time during the Observation Period, you must deliver on the Dynamic Forward for the higher Plus Notional Amount at the enhanced Reset Rate at Maturity. If the Exchange Rate has not traded at or above the Trigger Rate at any time during the Observation Period, and the Exchange Rate at Maturity is above the enhanced Protection Rate, you must deliver the Dynamic Forward for the Notional Amount at the prevailing Spot Rate.

*Observation Period can be Constantly Observed, Windowed or At Maturity

Possible Scenarios

Scenario 3: If the Exchange Rate has traded above the Trigger Rate at Maturity or during the Observation Period, the Dynamic Forward delivers the higher Plus Notional Amount at the enhanced Reset Rate at Maturity.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
The client can benefit from favourable currency movement up to but not including the Trigger Rate.

Disadvantages

If the Exchange Rate trades at or above the Trigger Rate at anytime during the Observation Period, the Dynamic Forward delivers the higher Plus Notional Amount at the enhanced Reset Rate.
If the Exchange Rate at Maturity is below the enhanced Protection Rate, the client would have achieved a more favourable rate using a fixed Forward Contract.
If the Exchange Rate moves unfavourably Ebury may make a Margin Call to cover the out-the-money position

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time. The company uses a calculation rate of 1.2200 for the current fiscal year.

The client is seeking protection but at the same time believes that there is a chance that the market may develop favourably to the GBP/USD 1.2700 average forecast of the major banks.

In consultation with the client, the following Dynamic Forward with Triggered Reset Plus is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Plus Notional Amount = $2,000,000

Protection Rate = 1.2300

Trigger Rate = 1.2800

Reset Rate = 1.2400

Observation Period = at Maturity

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.2200 at Maturity, which is below the enhanced Protection Rate of 1.2300. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the enhanced Protection Rate of 1.2300.

Scenario 2: The GBP/USD Exchange Rate is trading at 1.2700 at Maturity. The Exchange Rate has not traded at or above the Trigger Rate during the Observation Period. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the prevailing Spot Rate of 1.2700. The Dynamic Forward provides the ability to take full advantage of the positive Exchange Rate development.

Scenario 3: The GBP/USD Exchange Rate is trading at 1.2900 at Maturity. The Exchange Rate is now trading, or has traded during the Observation Period above the Trigger Rate, therefore the Dynamic Forward delivers the higher Plus Notional Amount for USD 2,000,000 at the enhanced Reset Rate of 1.2400.

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Dynamic Forward with Partial Triggered Participation

Hedging import related payables

Product Description

The Dynamic Forward with Partial Triggered Participation Plus enables you to fix an enhanced Protection Rate for the currency pair that you are looking to buy/sell on a predetermined date in the future. You also set an enhanced Trigger Rate and a predetermined percentage of the Notional Amount in which you can participate in favourable market movement up to the enhanced Trigger Rate.

If the Exchange Rate trades at or more favourably than the enhanced Trigger Rate at any time during the Observation Period, you are must transact the Notional Amount at the enhanced Protection Rate.

If the Exchange Rate has not traded at or more favourably than the enhanced Trigger Rate at any time during the Observation Period, and the Exchange Rate at Maturity is more favourable than the enhanced Protection Rate, you must transact a portion of the Notional Amount at the enhanced Protection Rate and transact the predetermined participation percentage at the prevailing Spot Rate.

*Observation Period can be Constantly Observed, Windowed or At Maturity

Possible Scenarios

Scenario 1: If the Exchange Rate is less favourable than the enhanced Protection Rate at Maturity, the client must deliver the Dynamic Forward for the Notional Amount at the enhanced Protection Rate.

Scenario 2: If the Exchange Rate is more favourable than the enhanced Protection Rate at Maturity and has not traded at or above the Trigger Rate during the Observation Period, the Dynamic Forward delivers a predetermined percentage of the Notional Amount at the agreed enhanced Protection Rate but also delivers the remaining predefined participation percentage at the prevailing Spot Rate.

Scenario 3: If the Exchange Rate has traded at or above the Trigger Rate during the Observation Period, the Dynamic Forward delivers the Notional Amount at the enhanced Protection Rate.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
This product offers the client the ability to participate in favourable Exchange Rate movements on a predetermined percentage of the Notional Amount up to the Trigger Rate.
The client receives better Protection and Trigger Rates compared to the regular Dynamic Forward with Triggered Participation.

Disadvantages

The Protection Rate will always be less favourable than the comparable Fixed Forward Rate.
The client can only partially benefit from favourable Exchange Rate movements up to but not including the Trigger Rate.
If the Exchange Rate moves unfavourably Ebury may make a Margin Call to cover the out-the-money position.

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time. The company uses a calculation rate of 1.2400 for the current fiscal year.

The client is seeking protection but at the same time believes that there is a chance that the market may develop favourably to the GBP/USD 1.2450 average forecast of the major banks.

In consultation with the client, the following Dynamic Forward with Partial Triggered Participation is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Protection Rate = 1.2250

Trigger Rate = 1.2665

Participation = 50%

Observation Period = at Maturity

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.2100 at Maturity, which is below the enhanced Protection Rate of 1.2250. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the enhanced Protection Rate of 1.2250.

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Dynamic Forward with Partial Triggered Participation

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time. The company uses a calculation rate of 1.2400 for the current fiscal year.

The client is seeking protection but at the same time believes that there is a chance that the market may develop favourably to the GBP/USD 1.2450 average forecast of the major banks.

In consultation with the client, the following Dynamic Forward with Partial Triggered Participation is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Protection Rate = 1.2250

Trigger Rate = 1.2665

Participation = 50%

Observation Period = at Maturity

Example Scenarios

Scenario 2: The GBP/USD Exchange Rate is trading at 1.2650 at Maturity. The Exchange Rate has not traded at or above the Trigger Rate during the Observation Period. Therefore, the Dynamic Forward delivers the Notional Amount of 500,000 USD (50%) at the prevailing Spot Rate of 1.2650 and 500,000 USD (50%) at the enhanced Protection Rate of 1.2250, which gives an average rate of 1.2447*

*Calculation = 1,000,000 USD/ (500,000 USD/ 1.2650) + (500,000 USD/ 1.2250) = 1.2447

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Dynamic Forward with Partial Triggered Participation Plus

Hedging import related payables

Product Description

If the Exchange Rate trades at or more favourably than the enhanced Trigger Rate at any time during the Observation Period, you are must transact the Plus Notional Amount at the enhanced Protection Rate.

*Observation Period can be Constantly Observed, Windowed or At Maturity

Possible Scenarios

Scenario 1: If the Exchange Rate is less favourable than the enhanced Protection Rate at Maturity, the client must deliver the Dynamic Forward for the Notional Amount at the Protection Rate.

Scenario 2: If the Exchange Rate is more favourable than the enhanced Protection Rate at Maturity and has not traded at or above the Trigger Rate during the Observation Period, the client must deliver the Dynamic Forward for a predetermined percentage of the Notional Amount at the agreed Protection Rate but also has to deliver the remaining predetermined participation percentage at the prevailing Spot Rate.

Scenario 3: If the Exchange Rate has traded at or above the Trigger Rate during the Observation Period, the client must deliver the Dynamic Forward for the higher Plus Notional Amount at the enhanced Protection Rate.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
This product offers the client the ability to participate in favourable Exchange Rate movements on a predetermined percentage of the Notional Amount up to the Trigger Rate.
The client receives better Protection and Trigger levels compared to the regular Dynamic Forward with Triggered Participation.

Disadvantages

The Protection Rate may be less favourable than the comparable Fixed Forward Rate
If the Exchange Rate trades at or more favourably than the Trigger Rate during the Observation Period the client must transact the full Plus Notional Amount at the enhanced Protection Rate and this may seem unattractive compared to the prevailing Exchange Rate at that time.
If the Exchange Rate oves unfavourably Ebury may make a Margin Call to cover the out-the-money position.

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 2 million in six months time.

The client is seeking protection but at the same time believes that there is a chance that the market may develop favourably to the GBP/USD 1.2400 average forecast of the major banks.

In consultation with the client, the following Dynamic Forward with Partial Triggered Participation Plus is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Plus Notional Amount = $2,000,000

Protection Rate = 1.2400

Trigger Rate = 1.2800

Participation = 50%

Observation Period = at Maturity

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.2300 at Maturity, which is below the enhanced Protection Rate of 1.2400. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the enhanced Protection Rate of 1.2400.

Scenario 2: The GBP?USD Exchange Rate is at 1.2650 at Maturity and has not traded at or above the enhanced Trigger Rate during the Observation Period. The Dynamic Forward delivers USD 500,000 (50% of the Notional Amount) at the Protection Rate of 1.2300 and the remaining USD 500,000 will be delivered at the Spot Rate of 1.2650, which gives an average rate of 1.2524*

Scenario 3: The GBP/USD Exchange Rate has traded at or above the enhanced Trigger Rate of 1.2800 during the Observation Period therefore the Dynamic Forward delivers the higher Plus Notional Amount of USD 2,000,000 at the enhanced Protection Rate of 1.2400

*Calculation= 1,000,000 USD/ (500,000 USD/ 1.2650) + (500,000 USD/ 1.2400) = 1.2524

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Bonus Dynamic Forward with Triggered Participation

Hedging import related payables

Product Description

The Bonus Dynamic Forward with Triggered Participation allows you the potential to lock in a Protection Rate for your currency exposure on a predetermined future date.

In addition to setting the Protection Rate, you also set a Trigger Rate and a Release Rate. If the Exchange Rate reaches or exceeds the Trigger Rate at any point during the Observation Period, the Dynamic Forward delivers the Notional Amount at the Protection Rate. Conversely, if the Exchange Rate fails to reach or exceed the Trigger Rate at any point during the Observation Period and the Exchange Rate at Maturity is higher than the Protection Rate, the Dynamic Forward delivers the Notional Amount at the prevailing Spot Rate.

If at Maturity, the Exchange Rate is less favourable than the Release Rate, the Dynamic Forward delivers the Notional Amount at the Protection Rate.

If at Maturity, the Exchange Rate is less favourable than the Protection Rate but has not reached or surpassed the Release Rate, the difference between the Exchange Rate and the Protection Rate will be calculated and added to the Protection Rate, resulting in the Dynamic Forward delivering the Notional Amount at the Improved Rate.

*Observation Period can be Constantly Observed, Windowed or At Maturity

Possible Scenarios

Scenario 1: If the Exchange Rate at Maturity is less favourable than the Protection Rate and Release Rate at Maturity, the Dynamic Forward delivers the Notional Amount at the Protection Rate.

Scenario 2: If the Exchange Rate at Maturity is less favourable than the Protection Rate and has not traded at or beyond the the Release Rate at Maturity, the Dynamic Forward will deliver the Notional Amount at the Improved Rate.

Scenario 3: If the Exchange Rate at Maturity is more favourable than the Protection Rate and has not traded at or above the Trigger Rate during the Observation Period, the Dynamic Forward will deliver the Notional Amount at the prevailing Spot Rate.

Scenario 4: If the Exchange Rate is more favourable than the Protection Rate at Maturity and has traded at or more favourably than the Trigger Rate during the Observation Period, the Dynamic Forward will deliver the Notional Amount at the Protection Rate.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
The client can benefit from favourable currency movement up to but not including the Trigger Rate. They can also benefit from unfavourable market movement and realize an Improved Rate relative to the the Fixed Forward Contract.

Disadvantages

The Protection Rate will always be less favourable than the comparable Dynamic Forward with Triggered Participation
If the Exchange Rate moves unfavourably Ebury may make a Margin Call to cover the out-the-money position.
If the Exchange Rate trades more favourably than the Trigger Rate during the Observation Period, or Release Rate at Maturity, the Dynamic Forward will deliver at the Protection Rate. In this case, the client would have achieved a more favourable rate using a Fixed Forward Contract.

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time.

The client has a strong view the market will trade in a range between 1.1800 and 1.2600, and has a budget rate of 1.2100.

In consultation with the client, the following Bonus Dynamic Forward with Triggered Participation is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Protection Rate = 1.2200

Trigger Rate = 1.2600

Release Rate = 1.1800

Trigger Observation Period = At Maturity

A normal Dynamic Forward with Triggered Participation offers better protection but no opportunity to benefit from a move below the budget rate.

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.1700 and is below the Release Rate at Maturity. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the Protection Rate of 1.2200.

Scenario 2: The GBP/USD Exchange Rate is trading at 1.1900 at Maturity and is below the Protection Rate and above the Release Rate at Maturity. The Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the Improved Rate of 1.2561*

Scenario 3: The GBP/USD Exchange Rate is trading at 1.2500 at Maturity and has not traded at or above the Trigger Rate during the Observation Period. The Dynamic Forward delivers the Notional Amount of 1,000,000 USD at 1.2500.

Scenario 4: The GBP/USD Exchange Rate is trading at 1.2800 at Maturity and has traded at or above the Trigger Rate during the Observation Period. The Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the Protection Rate of 1.2200.

*The Improved Rate is calculated as follows = USD amount / (GBP amount - GBP profit).

E.g.: $1,000,000 / (($1,000,000 / 1.2200) - ((1.2200 - 1.1900) * ($1,000,000 / 1.2200) / 1.1900)) = 1.2516

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Bonus Dynamic Forward with Triggered Participation Plus

Hedging import related payables

Product Description

The Bonus Dynamic Forward with Triggered Participation Plus allows you the potential to lock in an Protection Rate for your currency exposure on a predetermined future date.

In addition to setting the Protection Rate, you also set a Trigger Rate and a Release Rate. If the Spot Rate reaches or exceeds the Trigger Rate at any point during the Observation Period, the Dynamic Forward delivers the Plus Notional at the Protection Rate. Conversely, if the Spot Rate fails to reach or exceed the Trigger Rate and the Spot Rate at Maturity is higher than the Protection Rate, the Dynamic Forward delivers the Notional Amount at the prevailing Spot Rate

If at Maturity, the Exchange Rate is less favourable than the Release Rate, the Dynamic Forward delivers the Notional Amount at the Protection Rate.

If at Maturity, the Exchange Rate is less favourable than the Protection Rate but has not reached or surpassed the Release Rate, the difference between the Exchange Rate and the Protection Rate will be calculated and added to the Protection Rate, resulting in an Improved Rate that will be used to transact the Notional Amount.

*Observation Period can be Constantly Observed, Windowed or At Maturity

Possible Scenarios

Scenario 1: If the Exchange Rate at Maturity is less favourable than the Protection Rate and Release Rate, the Dynamic Forward delivers the Notional Amount at the Protection Rate.

Scenario 2: If the Exchange Rate at Maturity is less favourable than the Protection Rate and is more favourable than the Release Rate, the Dynamic Forward will deliver the Notional Amount at the Improved Rate.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
The client can benefit from favourable currency movement up to but not including the Trigger Rate.
They can also benefit from unfavourable market movement and realize an Improved Rate relative to the the Fixed Forward Contract.

Disadvantages

The Protection Rate will always be less favourable than the comparable Dynamic Forward with Triggered Participation Plus
If the Exchange Rate moves unfavourably Ebury may make a Margin Call to cover the out-the-money position.
If the Exchange Rate trades more favourably than the Trigger Rate during the Observation Period, the rate converts to the Protection Rate. In this case, the client would have achieved a more favourable rate using a Fixed Forward Contract.

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 2 million in six months time.

The client has a strong view the market will trade in a range between 1.1600 and 1.2900, and has a budget rate of 1.2100.

In consultation with the client, the following Bonus Dynamic Forward with Triggered Participation Plus is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Plus Notional Amount = $2,000,000

Protection Rate = 1.2200

Trigger Rate = 1.2900

Release Rate = 1.1600

Trigger Observation Period = at Maturity

A normal Dynamic Forward with Triggered Participation offers better protection but no opportunity to benefit from a move below the budget rate.

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.1400 at Maturity and is below the Release Rate of 1.1600. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the Protection Rate of 1.1600.

Scenario 2: The GBP/USD Exchange Rate is trading at 1.1700 at Maturity and is above the Release Rate of 1.1600. The Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the Improved Rate of 1.2745*

Scenario 3: The GBP/USD Exchange Rate is at 1.2800 at Maturity and has not traded at or above the Trigger Rate during the Observation Period. The Dynamic Forward delivers the Notional Amount of 1,000,000 USD at 1.2800.

Scenario 4: The GBP/USD Exchange Rate is at 1.3100 at Maturity and has traded at or above the Trigger Rate during the Observation Period. The Dynamic Forward delivers the higher Plus Notional Amount of 2,000,000 USD at the Protection Rate of 1.2200.

*The Improved Rate is calculated as follows = USD amount / (GBP amount - GBP profit).

E.g.: $1,000,000 / (($1,000,000 / 1.2200) - ((1.2200 - 1.1700) * ($1,000,000 / 1.2200) / 1.1700)) = 1.2745

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Dynamic Forward Plus

Hedging import related payables

Product Description

The Dynamic Forward Plus enables you to fix an enhanced Protection Rate for your currency exposure for a predetermined date in the future.

By committing a Plus Notional Amount, the enhanced Protection Rate is often better than the comparable Fixed Forward Contract.

Possible Scenarios

Scenario 1: If the Exchange Rate at Maturity is below the enhanced Protection Rate, the Dynamic Forward delivers the Notional Amount at the enhanced Protection Rate.

Scenario 2: If the Exchange Rate at Maturity is above the enhanced Protection Rate, the Dynamic Forward delivers the Plus Notional Amount at the enhanced Protection Rate at Maturity.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
The enhanced Protection Rate is often better than the comparable Fixed Forward

Disadvantages

If the Exchange Rate moves unfavourably Ebury may make a Margin Call to cover the out-the-money position

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time. The company uses a calculation rate of 1.2500 for the current fiscal year.

The client is seeking guaranteed protection and sufficient volume to commit extra Notional when hedging.

In consultation with the client, the following Dynamic Forward Plus is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $500,000

Plus Notional Amount = $1,000,000

Protection Rate = 1.2500

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.2200 at Maturity, which is below the enhanced Protection Rate of 1.2500. Therefore, the Dynamic Forward delivers the Notional Amount of 500,000 USD at the enhanced Protection Rate of 1.2500.

Scenario 2: The GBP/USD Exchange Rate is trading at 1.2700 at Maturity. Therefore, the Dynamic Forward delivers the higher Plus Notional Amount of 1,000,000 USD at the enhanced Protection Rate of 1.2500.

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Dynamic Forward with Capped Participation

Hedging import related payables

Product Description

The Dynamic Forward with Capped Participation protects you by providing you with a Protection Rate for your full exposure, like a Fixed Forward Contract. However, it allows you to participate in any favourable Exchange Rate move up to a Cap Rate.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
The client can benefit in favourable Exchange Rate movements up to the Cap Rate.

Disadvantages

If the Exchange Rate trades less favourably than the Protection Rate at Maturity, the client would have achieved a more favourable rate using a Fixed Forward Contract.
The client can only benefit in favourable Exchange Rate movements up to the Cap Rate
If the Exchange Rate moves unfavourably, Ebury may make a Margin Call to cover the out-the-money position.

Possible Scenarios

Scenario 1: If the Exchange Rate at Maturity is below the Protection Rate, the Dynamic Forward delivers the Notional Amount at the Protection Rate.

Scenario 2: If the Exchange Rate at Maturity is above the Protection Rate but below the Cap Rate, the Dynamic Forward delivers the Notional Amount at the prevailing Spot Rate.

Scenario 3: If the Exchange Rate at Maturity is above the Cap Rate, the Dynamic Forward delivers the Notional Amount at the Cap Rate.

Example

A client imports cars from the US and they forecast having to purchase USD 1 million in six months time. The client uses a calculation rate of 1.2000 GBP/USD for the current fiscal year.

The client is seeking full protection but at the same time believes that there is a chance that the market may develop favourably to the GBP/USD 1.2500 average forecast of the major banks.

In consultation with the client, the following Dynamic Forward with Capped Participation in GBP/USD is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Protection Rate = 1.2100

Cap Rate = 1.2500

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.2000 at Maturity, and is therefore below the Protection Rate of 1.2100. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the Protection Rate of 1.2100.

Scenario 2: The GBP/USD Exchange Rate is trading at 1.2400 at Maturity and is within the range formed by the Protection Rate and the Cap Rate. The Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the prevailing Spot Rate of 1.2400.

Scenario 3: The GBP/USD Exchange Rate is trading at 1.2600, which is above the Cap Rate. The Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the predetermined Cap Rate of 1.2500.

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Dynamic Forward with Capped Participation Plus

Hedging import related payables

Product Description

The Dynamic Forward with Capped Participation Plus protects you by providing you with an enhanced Protection Rate for your exposure, like a Fixed Forward Contract. However, it allows you to participate in any favourable Exchange Rate move up to a Cap Rate.

If the Exchange Rate is more favourable than the Cap Rate at Maturity the Dynamic Forward will deliver the Plus Notional at the Cap Rate.

Advantages

The client has certainty of a worst case rate.
The client has protection if the Exchange Rate moves against them.
The client can benefit in favourable Exchange Rate movement up to the Cap Rate.

Disadvantages

If the Exchange Rate trades less favourably than the enhanced Protection Rate at Maturity, the client would have achieved a more favourable rate using a Fixed Forward Contract.
The client can only benefit in favourable Exchange Rate movements up to the Cap Rate.
If the Exchange Rate moves unfavourably, Ebury may make a Margin Call to cover the out-the-money position.

Possible Scenarios

Scenario 1: If the Exchange Rate at Maturity is at or below the enhanced Protection Rate, the Dynamic Forward delivers the Notional Amount of the Dynamic Forward at the enhanced Protection Rate.

Scenario 2: If the Exchange Rate at Maturity is above the enhanced Protection Rate but below the Cap Rate, the client must deliver the Dynamic Forward for the Notional Amount at the prevailing Spot Rate.

Scenario 3: If the Exchange Rate at Maturity is at or above the Cap Rate, the client must deliver the Dynamic Forward for the higher Plus Notional Amount at the Cap Rate.

Example

A client imports cars from the US and they forecast having to purchase USD 1 million in 6 months time. The client uses a calculation rate of 1.2100 GBP/USD for the current fiscal year.

The client is seeking guaranteed protection but at the same time believes that there is a chance that the market may develop favourably to the GBP/USD 1.2600 average forecast of the major banks.

In consultation with the client, the following Dynamic Forward with Capped Participation Plus in GBP/USD is established.

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Notional Amount = $500,000

Plus Notional Amount = $1,000,000

Maturity = 6 months

Protection Rate = 1.2200

Cap Rate = 1.2600

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.2000 at Maturity, and is below the enhanced Protection Rate of 1.2200. Therefore, the Dynamic Forward delivers the Notional Amount of 500,000 USD at the enhanced Protection Rate of 1.2200.

Scenario 2: The GBP/USD Exchange Rate is trading at 1.2500 at Maturity and is within the range formed by the enhanced Protection Rate and the Cap Rate. The Dynamic Forward delivers the Notional Amount of 500,000 USD at the prevailing Spot Rate of 1.2500. The client was able to take full advantage of the positive Exchange Rate development.

Scenario 3: The GBP/USD Exchange Rate is trading at 1.2800, which is above the Cap Rate. The Dynamic Forward delivers the higher Plus Notional Amount of 1,000,000 USD at the predetermined Cap Rate of 1.2600.

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Boosted Dynamic Forward

Hedging import related payables

Product Description

The Boosted Dynamic Forward enables you to fix a Protection Rate for your currency exposure for a predetermined date in the future. You also set upper and lower Trigger Rates and a Reset Rate.

If the Exchange Rate has not traded at or beyond the upper or lower Trigger Rate during the Observation Period, you must deliver on the Dynamic Forward at the Protection Rate at Maturity.

If the Exchange Rate trades at or beyond the upper or lower Trigger Rate at any time during the Observation Period, you must deliver on the Dynamic Forward at the Reset Rate at Maturity.

*Observation Period can be Constantly Observed, Windowed

Advantages

The client can benefit from an enhanced Protection Rate compared to the Fixed Forward, if the upper and lower Trigger Rates are not exceeded during the Observation Period.
The client has certainty of a worst case rate and guaranteed Protection Rate.

Disadvantages

If the Exchange Rate trades at or beyond either Trigger Rate at anytime during a specified Observation Period, the Dynamic Forward delivers the Notional Amount at the Reset Rate. The Reset Rate can be less favourable than the comparable Fixed Forward Contract.
If the Exchange Rate moves unfavourably against the client, Ebury may make a Margin Call to cover the out-the-money position.

Possible Scenarios

Scenario 1: If the Exchange Rate has not traded at or beyond the upper or lower Trigger Rate during the Observation Period, then the Dynamic Forward delivers the Notional Amount at the Protection Rate at Maturity.

Scenario 2: If the Exchange Rate has traded at or beyond the upper or lower Trigger Rate during the Observation Period, then the Dynamic Forward delivers the Notional Amount at the Reset Rate at Maturity.

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time. The company uses a calculation rate of 1.2200 for the current fiscal year.

The client expects a range bound market and likes to benefit from such a scenario unfolding.

In consultation with the client, the client enters into the following Boosted Dynamic Forward with Ebury:

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Protection Rate = 1.2500

Reset Rate = 1.2200

Upper Trigger Rate = 1.2800

Lower Trigger Rate = 1.2000

Observation Period = 1 Month Window

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.2400 at Maturity and has not traded at or beyond 1.2000 or 1.2800 during the Observation Period. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the enhanced Protection Rate of 1.2500.

Scenario 2: The GBP/USD Exchange Rate is trading at 1.2900 at Maturity and has traded at or beyond 1.2000 or 1.2800 during the Observation Period. Therefore, the Dynamic Forward delivers the Notional Amount of 1,000,000 USD at the Reset Rate of 1.2200.

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Boosted Dynamic Forward Reset Plus

Hedging import related payables

Product Description

The Boosted Dynamic Forward Plus Reset enables you to fix an enhanced Protection Rate for your currency exposure for a predetermined date in the future. You also set an upper and lower Trigger Rates and a Reset Rate.

If the Exchange Rate has not traded at or beyond the upper and lower Trigger Rates, you must deliver on the Dynamic Forward for the Notional Amount at the enhanced Protection Rate at Maturity.

If the Exchange Rate trades at or beyond the upper or lower Trigger Rate at any time during the Observation Period, you must deliver the Dynamic Forward for the Plus Notional Amount at the Reset Rate at Maturity.

*Observation Period can be Constantly Observed, Windowed

Advantages

The client can benefit from an enhanced Protection Rate rate compared to the Fixed Forward, if the upper and lower Trigger Rates are not exceeded during the Observation Period.
The client has certainty of a worst case rate and guaranteed protection rate.

Disadvantages

If the Exchange Rate trades at or beyond either Trigger Rate at anytime during a specified Observation Period, the Dynamic Forward delivers the Plus Notional Amount at the Reset Rate. The Reset Rate can be less favourable than the comparable Fixed Forward.
If the Exchange Rate moves unfavourably against the client, Ebury may make a Margin Call to cover the out-the-money position.

Possible Scenarios

Scenario 2: If the Exchange Rate has traded at or beyond the upper or lower Trigger Rates during the Observation Period, then at Maturity the Dynamic Forward delivers the Plus Notional Amount at the Reset Rate at Maturity.

Example

A client imports office supplies from China and anticipates a requirement to purchase USD 1 million in six months time. The company uses a calculation rate of 1.2200 for the current fiscal year.

The client expects a range bound market and likes to benefit from such a scenario unfolding.

In consultation with the client, the client enters into the following Boosted Dynamic Forward Reset Plus with Ebury:

Spot Reference = 1.2400

Window Forward Reference = 1.2300

Maturity = 6 months

Notional Amount = $1,000,000

Plus Notional Amount = $2,000,000

Protection Rate = 1.2600

Reset Rate = 1.2200

Upper Trigger Rate = 1.2800

Lower Trigger Rate = 1.2000

Observation Period = 1 Month WIndow

Example Scenarios

Scenario 1: The GBP/USD Exchange Rate is trading at 1.2400 at Maturity and has not traded at or beyond 1.2000 or 1.28000 during the Observation Period. Therefore, the Dynamic Forward delivers the Notional Amount 1,000,000 USD at the enhanced Protection Rate of 1.2600.

Scenario 2: The GBP/USD Exchange Rate is trading at 1.2900 at Maturity and has traded at or beyond 1.2000 or 1.2800 during the Observation Period. Therefore, the Dynamic Forward delivers the higher Plus Notional Amount 2,000,000 USD at the Reset Rate of 1.2200.

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Glossary

Cap Rate: means a foreign Exchange Rate as agreed by you and Ebury. If the prevailing spot rate reaches the Cap Rate at Maturity this will affect the rate at which you may need to exchange the currencies under the relevant Dynamic Forward product.

Constantly Observed: means that Ebury will monitor the Trigger Rate for the relevant Dynamic Forward from the Trade Date to the Maturity Date.

EUR: means Euro.

Exchange Rate: is the value of one currency for the purpose of conversion to another.

Forward Rate: means the Exchange Rate that you would be able to achieve on a Forward Contract at the current time.

Improved Rate: This refers to the foreign Exchange Rate determined and calculated by Ebury. If the Exchange Rate falls between the Release Rate and the Protection Rate at Maturity, it will impact the Exchange Rate that your Dynamic Forward will deliver at Maturity.

Maturity Time: the exact time on the Maturity Date when the outcome and rate of the Dynamic Forward is defined.

Maturity Date / Maturity: means the time on the day on which the outcome of Dynamic Forward is decided.

Notional Amount: means the predetermined foreign currency amount to be bought or sold pursuant to a Dynamic Forward.

Observation Period: means a predetermined period during which Ebury and you will monitor the Trigger Rate for the relevant Dynamic Forward Product.

Protection Rate: means a foreign Exchange Rate as agreed by you and Ebury which is the least favourable rate that the Dynamic Forward will deliver.

Plus Notional Amount: means the predetermined increased foreign currency amount to be bought or sold pursuant to a Dynamic Forward

Release Rate: This refers to the foreign Exchange Rate that has been mutually agreed upon between you and Ebury. If, at Maturity, the Exchange Rate reaches the Release Rate, it will impact the Rate that your Dynamic Forward will deliver at Maturity.

Reset Rate: means an Exchange Rate as agreed by you and Ebury. If the prevailing Spot Rate reaches the Trigger Rate during the relevant Observation Period this will affect the rate at which you may need to exchange the currencies under the relevant Dynamic Forward product

Spot Reference: The Spot Rate at the point of entering into the Dynamic Forward.

Spot Rate: means the current Exchange Rate for a given currency pair.

Trade Date: means the Business Day on which Ebury enters into a Dynamic Forward Product with you.

Trigger Rate: means a foreign Exchange Rate as agreed by you and Ebury. If the prevailing Spot Rate reaches the Trigger Rate during the relevant Observation Period, this will affect the rate at which you may need to exchange the currencies under the relevant Dynamic Forward product.

USD: means United States Dollar.

Windowed: The two pre-agreed dates between which Ebury will monitor the Exchange Rate to determine if the Trigger Rate(s) for a Dynamic Forward has been reached.

Window Forward Reference: The Window Forward Rate at the point of entering into the Dynamic Forward

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Dynamic Forwards: Information Document

Disclaimer

Content

Triggered Participation

Capped Participation

Boosted Forward

Glossary

Dynamic Forward - Introduction

What is a Dynamic Forward?

Introduction

Advantages

Disadvantages

Dynamic Forward with Partial Participation

Product Description

Possible Scenarios

Advantages

Disadvantages

Example

Example Scenarios

Dynamic Forward with Triggered Participation

Product Description

Possible Scenarios

Advantages

Disadvantages

Example

Example Scenarios

Dynamic Forward with Triggered Participation Plus

Product Description

Possible Scenarios

Advantages

Disadvantages

Example

Example Scenarios

Dynamic Forward with Triggered Reset

Product Description

Possible Scenarios

Advantages

Disadvantages

Example

Example Scenarios

Dynamic Forward with Triggered Reset Plus

Product Description

Possible Scenarios

Advantages

Disadvantages

Example

Example Scenarios

Dynamic Forward with Partial Triggered Participation

Product Description

Possible Scenarios

Advantages

Disadvantages

Example

Example Scenarios

Dynamic Forward with Partial Triggered Participation

Example

Example Scenarios

Dynamic Forward with Partial Triggered Participation Plus

Product Description

Possible Scenarios

Advantages

Disadvantages

Example

Example Scenarios

Bonus Dynamic Forward with Triggered Participation

Product Description

Possible Scenarios

Advantages

Disadvantages

Example

Example Scenarios

Bonus Dynamic Forward with Triggered Participation Plus

Product Description

Possible Scenarios

Advantages

Disadvantages

Example

Example Scenarios

Dynamic Forward Plus

Product Description