Financial Instruments

Spot Transactions
Spot contracts can be thought of as a ‘buy now, pay now’ arrangement. The trade is done at the current rate at the time you wish to make it and is often based on the urgency of your requirements. SPOT contracts can be a great way of taking advantage of short-term movements in the Currency Market that go in your favour. However, using spot contracts without leveraging your exposure with other financial products can be a high-risk strategy. They are generally used when payments and requirements come on expectedly and is a quick turnaround method to have a supplier paid on time. Although most spot transactions are paid for on the same day to get to the supplier as quickly as possible, you will in fact have 3 days from when the trade is placed to settle the trade, any longer than this and the trade is regarded as a forward contract.
Market Orders
If you know that you have upcoming foreign exchange requirements but may not need to purchase straightaway and are looking to target a particular rate which isn’t currently available, Market Orders could be the solution for you. A Limit Order (another term for market order) allows you to target a set exchange rate above the current market level, which once reached, will automatically buy/sell a set amount of currency for you. This solution works well if you have upcoming payments but aren’t restricted by tight deadlines and can afford to wait for the rate to improve. At Pangea FX, you are assigned a dedicated PortfolioManager, who will work with you to identify where to strategically place MarketOrders and explain the associated risks. If both types are used together, the client can aim for a favourable exchange rate while limiting any foreign exchange losses. As soon as either one of your pre-set rates is triggered, the other is cancelled immediately. The advantage of using Market Orders is that they can be placed on a GTC (good until cancelled) basis allowing you to place an order and not have to watch or monitor the markets manually. If you decide to use both together, this is known as an OCO order (where one cancels the other).
Forward Contracts
Your dedicated FX Strategy Consultant will begin by understanding your business and the role foreign exchange plays within. A unique risk management strategy will be developed to suit your needs. Once your account manager presents all suitable solutions, you will work together to select appropriate strategies. Forward contracts enable you to reserve a forward price for buying or selling currencies on a specific date in the future. The price you lock in is determined on the day you agree the amount and settlement date for the forward contract. Forward contracts are particularly useful for businesses that have future payments or receipts in foreign currency because they allow you to protect your budget and profit margins. They can bean important part of a company’s hedging toolkit, as they remove any concerns over the unpredictability of currency markets, enabling you to lock in a forward rate and focus on running your business.
Hedging Solutions
As a dynamic business with access to the world's leading liquidity providers, we are able to provide leading unsecured hedging facilities to best support your cash flow requirements. We provide tailored and proactive market analysis to guide market entry. Our analysis is designed for you and your requirements by a dedicated portfolio manager. We Purchase millions in currency every year through our pool of global liquidity providers, enabling us to provide competitive rates at wholesale prices. Whether it’s a spot or forward contract, we can provide risk management products that are effective for suitable clients’ prices. Pangea FX has multiple liquidity providers, the Currency Cloud does not provide our hedging solutions.
Collection Accounts
Avoid intermediary banks fees and delays when sending and receive funds using our local payments network. Any unnecessary conversion costs will be avoided by the use of local accounts to collect funds in local currencies. By allowing customers to pay in their local currency you will improve the relationship with them. There’s no need to check when your funds have landed with our automated confirmations immediately when funds are received, and you can receive payments in over 100 different currencies from multiple locations.
Client Management
Our clients benefit from the knowledge and experience of their dedicated Client Manager. They will understand you and your business, devise strategies to manage your FX risk and keep you up to date with the latest information that will specifically impact you. Clients are also able to execute trades and payments over the phone through their Client Manager.