Financial Market Solutions Foreign Exchange Hedging

ADCB

Comprehensive and innovative foreign exchange risk management solutions

We provide bespoke solutions to help mitigate foreign exchange risk. Reduce the risk by entering in simple FX forwards, as well as entering into FX structured solutions required.

FX Spot

Competitive currency exchange rates on a spot basis for all GCC, G10 and several emerging market currencies, as well as an online platform where clients can view the live rates and trade at their convenience.

FX Forward

FX forward is an arrangement between two parties to buy or sell a currency at a pre-agreed future date at a pre-agreed exchange rate. The arrangements is based on Shari’ah-compliant unilateral promise (waad) mechanism.

Flexi Forward

Flexi Forward allows you to fix an exchange rate and take full or partial delivery for a specified time frame pre-agreed at the time of the trade. The arrangements are based on Shari’ah-compliant unilateral promise (waad) mechanism.

FX Options (calls and puts)

An option is a financial instrument (or derivative) which gives the buyer (or holder) the right, but not the obligation, to buy or sell the underlying currency pair at a fixed price (known as the strike price) at a specific time (known as expiry). For this right, the option buyer pays a premium to the seller. The option seller has a duty to buy or sell the underlying asset if the buyer decides to exercise their right. Clients can also enter into zero cost structures by buying and selling multiple options simultaneously. Bespoke solutions can be provided based on the client’s requirement. The arrangements are based on Shari’ah-compliant unilateral promise (waad) mechanism.

Target Redemption Forward (TRF)

A TRF is a foreign exchange derivative instrument which allows the buyer to buy or sell a currency for multiple expiries at a more favourable rate as compared to a strip of vanilla FX forwards. In this structure, the client’s gains are capped, and if the total gain reaches the target amount, the structure knocks out. The TRF can have additional features such as leverage and knock in, and the strike rate changes accordingly. The arrangements are based on Shari’ah-compliant unilateral promise (waad) mechanism.

The preferred business partner for our valued customers

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