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Ralph Martin found a Sunseeker 66 Manhattan he wanted to buy in June 2010. He needed to pay €875,000 for it in euros.
He booked a forward contract with us in June, paying a 8% deposit, which locked him in to a sterling-euro exchange rate of 1.2210.
By the time the sale of the boat went through at the end of September, the exchange rate had moved to 1.1720. The forward contract saved him a total of £29,962.
The rate could have improved by September too, in which case the boat would have been less expensive.
But Ralph had budgeted to buy the boat at no lower than 1.21 – and fixing the rate in advance allowed him to do this, and ensured there were no nasty surprises on the day if the rates had gone the other way.
Equally, he could have decided to enter into a currency option, which would have allowed him to fix the rate and benefit on half the amount if rates had moved in his favour.
To find out more, call us on 1 800 835 506, or +61 2 8298 4900. You can also ask us to call you back
"The proactive, professional service we receive from World First is what has really impressed me" Eva Galambos, Parlour.
"I really appreciate your services. Easy+reliable+very competitive rates." Bernard Haidinger
World First Pty Ltd is regulated by the Australian Securities and Investments Commission (ASIC) AFS Licence number 331945. Australian Company Number (ACN) 132 368 971. Member of the Financial Ombudsman Service membership number 134005.