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✓ An agreement between two parties to exchange one currency for another on a predefined future date

✓ The rate is calculated using the current exchange rate and an adjustment for the forward points for the term of the contract

✓ The pre-agreed rate will remain fixed during the period, regardless of appreciation or depreciation of the currency pair

✓ Protection against negative cash flows at a predefined rate by providing clarity for future cash flows

✓ No settlement under the contract is required until the agreed settlement date, supporting cash flow management

✓ If the contract is no longer required, the cost of closing the currency position will be determined at the market rate available at that time and will be paid by the customer

✓ The current market value of the contract will change in line with the market during its term

✓ Inability to participate in favorable changes in the market price

✓ Notional amount

✓ Currency pair

✓ Settlement date

✓ Spot

✓ Forward rate

✓ HFM will also help customers manage currency risks and hedge potential losses that may arise from currency fluctuations. Profit or loss is calculated by taking the difference between the spot rate on the valuation date and the rate agreed on the transaction date and multiplying it by the notional amount.

✓ The calculated amount is then transferred to the relevant party on the settlement date. On the payment date, as with an FX Forward, the difference in the HFM rate is paid instead of the notional amounts.

✓ Commodity futures provide investors with exposure to a wide range of commodities, enabling portfolio diversification and risk reduction.

✓ These futures also offer speculative opportunities for investors seeking to profit from price changes in commodity markets by using volatility for potential gains.

✓ Commodity prices can be highly volatile and, under the influence of factors such as weather conditions, geopolitical events, supply and demand dynamics and macroeconomic trends, may lead to potential price changes and increased risk.

✓ Trading commodity futures involves the use of leverage, which can amplify both potential gains and losses, especially in volatile markets.

✓ A call/put option contract gives the buyer the right, but not the obligation, to buy/sell one currency for another at an agreed strike price within or by a pre-agreed period.

✓ In the foreign exchange market, an option contract defines the price at which the customer may buy or sell currency on a future date:

• Both parties agree on an exchange rate for a specific future date
• Money does not change hands until the future payment date
• The customer pays a premium to the Bank. If the customer buys a Call or Put option, the customer has the RIGHT, but not the OBLIGATION, to buy or sell currency on the specified date stated in the contract
• If the customer wants to exercise the option, the Bank has the OBLIGATION to buy or sell the currency

✓ Protection against negative cash flows at a predefined exchange rate by providing clarity for future cash flows

✓ No obligation to exchange currency, providing full flexibility

✓ A non-refundable premium is paid when purchasing the currency option

✓ The market value assessment of the contract may be positive or negative throughout the entire term of the contract in line with market changes

✓ Notional amount

✓ Currency pair

✓ Settlement date

✓ Spot

✓ Strike price

✓ A currency swap is a contract to buy one currency and sell another by exchanging specific amounts in two currencies on two separate dates.

✓ The exchange rate difference between the near and far dates is called swap points.

✓ A currency swap is a suitable product for customers who want to organize cash flows and future cash flows in currencies that differ significantly from the currencies they hold.

✓ Can be used to cover a temporary cash shortage in one currency using another currency.

✓ Can be used to reduce fluctuations in the value of assets or liabilities held in non-base currencies.

✓ Simultaneous provision of Spot and Forward rates helps with hedging and brings clarity to future cash flows.

✓ If the contract is no longer required, the termination value will be determined at the market rate available at that time and paid by the customer

✓ The market price of the contract will change in line with the market during its term

✓ Inability to participate in favorable changes in the market price