Plan ahead with forward contracts

A quick guide for growing businesses

What Is a forward contract?

A forward contract lets you lock in an exchange rate today for a payment you’ll make in the future. It’s a simple way to protect your business from currency swings and plan ahead with confidence. Forward contracts are not about chasing the highest rate. They’re about gaining certainty over expenses. They help you minimize market risk and give you control over your costs.

Important considerations for forward contracts

Once you enter a forward contract, you are obligated to complete your payment at the agreed upon exchange rate, even if the currency moves in your favor. You may also be subject to a margin call that may affect your cash flow positions.
If you are not confident about your understanding of forward contracts, or foreign exchange and related markets, we strongly suggest you seek independent advice before making the decision to use these instruments.

Common scenarios where forward contracts can help

Managing invoice timing (e.g. 30-90 day supplier payments)

Protecting profit margins in fixed-price contracts

Planning for seasonal or project-based payments

Examples

You expect to pay a supplier in USD next month and want to avoid rate fluctuations.

You plan to fund your account for a seasonal inventory purchase in 60 days.

You’re preparing for a large project-based payment in EUR and want certainty on costs.

“Since using Forwards, FX risk feels less daunting. We’ve reduced our exposure, improved margin protection, and gained more confidence in our pricing strategy. It’s a smart, flexible tool that’s now part of how we operate.”

DAVID HAMILTON
DIRECTOR, FELLA HAMILTON

“Forwards give us breathing space. If the market moves, we don’t have to react immediately – we can wait and see if it’s a short-term dip or something more sustained. It’s a simple tool, but it’s made a big difference to how we manage FX risk. We’ll definitely continue using them.”

PAUL BUTCHER
MANAGING DIRECTOR, ALAN BUTCHER COMPONENTS

Why use forward contracts?

Protect your margins from FX volatility

Plan ahead with predictable costs

Avoid surprises when paying international suppliers

Use multiple Forward Contracts to manage different payment timelines

Book in minutes via GlobalPay or with support from Convera

How forwards contracts work?

Choose your currency and amount

Select a future delivery date (or a flexible window)

Lock in your rate

Use the forward contract when you’re ready to pay

Additional details

You can draw down from a forward contract on expiry or within the flexible window, or you may ask Convera for approval to extend the value date of your forward contract.

Once booked, a forward contract is a binding commitment

You can set a target rate for auto-booking via market orders

Learn more

CUSTOMER SPOTLIGHT

“Using forward contracts gives me some confidence that the funds will be available to pay our suppliers, and I know in advance what the cost will be in our local currency.”

DINA POULOPOULOU,
MANAGING DIRECTOR, GLOBAL SUMMERS ACADEMY

Already enabled for forward contracts?

Navigate to Cash Management > Buy Forward
Select currency, amount, and delivery date
Submit and confirm your Forward
View it under Holding Balances

If you’re not confident about which direction to book – whether you’re buying or selling your base currency – please contact your dealing team. They can walk you through the process and help ensure you’re booking correctly.

Further details can be found here.

To book forward contracts online via GlobalPay, you must

Have a credit limit approved by Convera
Provide a valid LEI (Legal Entity Identifier)
Have forward trading enabled on your account

FOR EDGE USERS

Already setup for forward contracts?

Contact Sales to initiate a forward contract
You can draw down from existing forward contract via Holding Balances (availability varies by region)