Foreign Exchange Products

The Corporate Treasury Services team is responsible for delivering WATC’s foreign exchange products and services along with its Treasury Management Services.

Spot transaction

The exchange of one currency for another at the prevailing market rate (the spot rate). Cash flow will occur two business days following the transaction date.

Forward transaction

The exchange of one currency for another at a predetermined future date, where the rate of exchange is agreed today (the forward rate). Forward transactions have no up-front cost.

Option transaction

The right (but not the obligation), to buy (call option) or sell (put option) an agreed amount of one currency against another currency on a specified date (exercise date), at an agreed rate of exchange (strike price). Option transactions will usually have an up-front cost (premium).