Hedge Foreign Exchange Risk in AFN - Afghan Afghani

The maximum amount of hedges in Afghan Afghani (AFN) that you can validate primarily depends on the size of the forward exchange line granted to you. The line conditions granted depend on the review of your financial statements. Regarding minimum sizes, we generally do not take hedges for amounts below 10,000 EUR (or equivalent in other currencies).

All fees related to setting up hedges in Afghan Afghani (AFN) are included in the exchange rate communicated to you before the validation of your transaction. The hedging is done by phone with a trading desk operator. No fees are applied to the use of your hedges.

Again, this depends on the conditions of your forward exchange line. Thanks to its network of partners, Mondial Change generally manages to obtain forward exchange lines without an initial security deposit. Depending on your line conditions, margin calls may be triggered on your Afghan Afghani (AFN) hedging contracts if the EUR/AFN rate (or any other pair on which you have validated a hedge) deteriorates beyond the variation margin or beyond your OTM. In this case, you must deposit funds as collateral to keep your Afghan Afghani (AFN) contracts open. Based on the review of your financial statements, lines without margin calls may sometimes be granted.

No minimum amount for drawdowns on your flexible forward contracts in Afghan Afghani (AFN). You can draw autonomously on the online platform as many times as you wish between the contract initiation and the maturity date of your forward contract in Afghan Afghani (AFN).

In this case, there are two possibilities. You can sell the balance of your contract by paying the potential exchange loss if the exchange rate at the time of resale is less favorable than your contract rate. Alternatively, you can request Mondial Change to extend your Afghan Afghani (AFN) contract by a few months to give you time to use it. Mondial Change and its partners reserve the right not to accept the postponement of the contract's maturity date.

It all depends on whether you are a buyer or seller of Afghan Afghani (AFN) and against which currency you are trading the Afghan Afghani. For example, against the euro: If you are a buyer of Afghan Afghani (AFN) against the EUR, there are report points because the interest rate of Afghan Afghani (AFN) is supérieur to that of the EUR. Conversely, if you are a seller of Afghan Afghani (AFN) against the EUR, there are déport points.