This letter outlines how NAB will communicate and transact in relation to the execution of FX transactions, expressions of interest in FX transactions and our management of potential or actual conflicts of interest in our FX-related activities. This letter is for our Wholesale clients only.
Exchanges currencies in two (business) days' time, at today's agreed rate.
The simplest method of buying or selling foreign currency.
Forward Exchange Contract
Exchanges currencies on a future date, at a rate agreed today.
Provides a fixed, known rate and gives greater cash flow certainty for business planning purposes.
Sets an exchange rate for a specified currency amount for an amount in different currency on the transaction settlement date.
Offers the benefits of both protection and participation.
Currency Protection and Participation Contract
Provides a fixed, known rate should the currency move unfavourably.
Offers unlimited gain potential from a favourable rate movement.
Vanilla FX Option
The right (but not obligation) to buy or sell a specified amount of one currency in exchange for another currency
Agreed rate when the option is bought (strike rate), on an agreed settlement date.
Learn with NAB
Guidance and Advice for your Business
Foreign Exchange with NAB
Read about managing your exposure to changes in the foreign currency market.
Forward Exchange Contracts
Understanding Foreign Exchange risk is important. Learn how Forward Exchange Contracts can be useful.
Sales and Trading Practices
NAB General Disclosure Statement
The information provided on this webpage is intended to be of a general nature only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on the information on this webpage, National Australia Bank Limited (ABN 12 004 044 937, AFSL and Australian Credit License 230686) (NAB) recommends you consider whether it is appropriate for your objectives, financial situation and needs. NAB recommends that you seek independent advice before acting on any information on this webpage.