For every specific need, we have a solution
Currency market fluctuations can significantly impact your cash flows. Manage your foreign exchange risk with our tailored solutions.
I want an expert to call me backUnderstanding your needs
We carefully listen to your needs and provide you with precise information, enabling you to make informed decisions to optimise your cash flows.
Implementation of the appropriate strategy
Based on your risk profile, we develop the most suitable strategy at the right time.
Benefit from the support of a dedicated operator with over 10 years of experience
They will be with you throughout the entire lifespan of your strategy, helping you adjust it if necessary.
Spot deals
Spot transactions are ideal for simple operations such as paying for goods or services or receiving funds in foreign currencies. Typically, these transactions are executed with a value date on the same day, the following day, or on the spot value date (T+2), which means two business days after the transaction, when the purchased currency is made available once the sold currency has been received.
Forward contracts
A forward contract allows you to lock in an exchange rate today while providing the flexibility to use it at any time within a predefined period. This contract protects against future exchange rate fluctuations by guaranteeing a fixed price, regardless of market variations.
The main risk is that, since the rate is fixed and the currencies are bought in advance, you might miss out on benefiting from a favourable change in the exchange rate between the transaction date and the maturity date. Additionally, if the spot market moves unfavourably, a margin call may be required to cover the position in a loss to protect against counterparty risk. Finally, any cancellation or modification of a forward contract may incur additional costs. Therefore, it is important to carefully assess these risks before entering into a forward contract.
A margin call is a request made by a broker or financial institution for you to top up your account by adding additional funds. This request occurs when the latent value of the assets held in your account, compared to their spot market value, falls below a critical threshold known as the maintenance margin.
In other words, a margin call is issued when your forward contract becomes "out-of-the-money," meaning that the current spot market value is less favourable than the rate set in the contract. If you do not respond to this margin call by adding the necessary funds, your position may be automatically liquidated to limit losses.
A margin call is an essential protection mechanism for the financial institution and the financial markets in general, as it safeguards against potential default risks. However, it also represents a significant risk for the client if the market moves strongly against them.
When setting up a forward contract, we typically require an initial deposit of 5% of the total amount, to be paid immediately after the contract is established. This deposit is not a fee but a pre-payment that will be deducted from the final amount due when you use the forward contract. It also helps reduce the risk of a margin call in case of unfavourable market movements.
If you wish to reduce or even eliminate this initial deposit to further optimise your cash flow, we can submit your request to our financial department. They may, in some cases, accommodate this request after a thorough review of your company's finances.
You can set up a forward contract with a maturity ranging from one week to 2 years. This typically covers nearly all the hedging needs of a traditional business or individual.
In very specific cases and for particular projects (such as a real estate project or an investment extending over several years), Devyzz can assist with maturities of up to 5 years. Feel free to contact our trading room if you would like to learn more.
Optimise the timing of your transactions
Optimising the timing of your transactions is essential for maximising your gains and minimising risks associated with exchange rate fluctuations. With our real-time rate tracking service, we monitor market opportunities for you. Additionally, we offer various types of automatic orders that allow you to set specific targets and seize opportunities as soon as they arise.
Not satisfied with a strategy implemented with your bank? Turn to our Restructuring Service.
A strategy restructuring is a process where an ongoing strategy is modified or adjusted to better meet a client's needs and goals, especially if the client is dissatisfied with the results obtained so far. It involves a thorough reassessment of the client's objectives, current market conditions, and the performance of the existing strategy. The aim is to design a new approach or adjust existing parameters to improve results, optimise costs, or better align the strategy with the client's business objectives.
