foreign exchange deals

let us deal with your exchange rate risk together

  • protection, better security
  • capitalization on favourable market shifts
  • improved predictability of cash flows
foreign exchange deals

how we support your business?

  • wide range of tools to hedge exchange rate risk, including spots, forwards, swaps and options
  • our dedicated dealers act as advisers in proactively looking together with you for the solutions that fit you best
  • using our online dealing system you get prices real time and can make deals yourself
  • new: payment services in Chinese yuan (CNY)


The primary tool for hedging foreign-exchange risk is forwards. A foreign exchange forward is an agreement on a future conversion specifying all the details: the currency, the value date (expiration date), sell or buy, the amount and the exchange rate, in advance.

The forward rate is a composite:

forward rate = spot rate + swap points

The spot rate is the market rate for value date T+2, while the swap points represent the interest rate difference between the two currencies for the term of the forward.

choose from the options below:​

hedging of foreign currency revenues for a single expiry – forward

hedging of foreign currency revenues for various expiries – average forward

A currency swap allows you to convert an amount of foreign currency to forints or vice versa for a defined period of time at a defined exchange rate (of course you can do that with any currency pair quoted by the bank). In this way you can increase your liquidity in a given currency during a certain time period at the expense of concurrently reducing your liquidity in another currency.

I.e. this contract includes a spot or forward deal in a currency and an opposite forward deal in the same currency for a later settlement.

spot or forward deal + opposite forward deal = currency swap

choose from the options below:

A plain vanilla option is similar to an insurance policy, which is meant to provide total coverage against unfavourable market shifts while allowing you to capitalize on favourable ones.

it has two basic types:

  • call option (a right to buy on the buyer of the option’s side, an obligation to sell on the seller of the option’s side)
  • put option (a right to sell on the buyer of the option’s side, an obligation to buy on the seller of the option’s side)

Options allow you to a much greater extent than cost-free arrangements to capitalize on favourable exchange rate shifts.

Since for many of our clients no cost is a top priority below we primarily present products that are combinations of various rights and obligations put together in such a way that the final product is cost-free.

choose from the options below:

A barrier option is similar to a plain vanilla option with the difference that the option being activated or extinguished depends on something called the barrier level: if the market price reaches the barrier level at a specific point in time or anytime during the term of the contract then something will happen to the option, e.g. it is activated or is extinguished.

accordingly there are:

  • knock-in options: if the spot price reaches the barrier level the option becomes a plain vanilla option
  • knock-out options: if the spot price reaches the barrier level the option is extinguished

Another way to classify barrier options is according to when the reaching of the barrier is monitored:

  • with a European style barrier the breaching of the barrier is only examined at a predefined time on expiry date
  • with an American style barrier the breaching of the barrier is monitored from contract date to expiration date

Barrier options are popular because they are cheaper than plain vanilla options and therefore can be efficiently used in various option arrangements. A knock-in option and a knock-out option of the same contract term, nominal value, strike price and barrier have a combined value equal to the value of a plain vanilla option of the same contract term, nominal value and strike price.

choose from the options below:

adapted to your needs

As one of the key players in the money, foreign exchange and capital markets in Hungary, we want to establish a long-term partnership with you. We are here to formulate your hedging strategy, built on the following products and more, in consideration of your market expectations and the risks associated with your operations. 

you should know before you decide

As a precondition for dealing you must have or fill in the following:

  • Treasury Framework Agreement

  • MiFID questionnaire (about suitable product complexity)

  • MiFID2 related documents

  • Effective Treasury limit (where you need one)

  • Active LEI code, EMIR declaration

Other fees:

The transaction fees, if any, are included in the Announcement on Investment Services.

For the prevailing exchange rates see the official Reuters web page.

These documents are not intended as personalized investment advice and do not constitute a recommendation to buy, sell or hold investments described herein. Their purpose is solely to attract attention.
Please, note that the parameters and prices stated in the product description are of indicative nature and serve only referential purposes. The parameters of the actually concluded deals will correspond to the terms agreed during the telephone conversation recorded upon deal conclusion and those may depart from the indicative parameters and prices stated in this product description.
For further information on products and tailor-made pricing, please contact your relationship manager or one of our dealers at Markets Directorate.