Hedge Currency Risk in XPF - CFP Franc

The maximum amount of CFP Franc (XPF) hedges you can validate primarily depends on the size of the forward exchange line granted to you. The conditions of the line granted depend on the review of your financial statements. As for 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 CFP Franc (XPF) hedges are included in the exchange rate communicated to you before validating your operation. 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 the conditions of your line, margin calls may be triggered on your CFP Franc (XPF) hedging contracts if the EUR/XPF 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 CFP Franc (XPF) contracts open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.

No minimum amount for drawdowns on your flexible forward contracts in CFP Franc (XPF). You can draw down independently on the online platform as many times as you wish between the contract initiation and the maturity date of your CFP Franc (XPF) forward contract.

In this case, there are two possibilities. You can sell the balance of your contract by paying any 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 CFP Franc (XPF) contract by a few months to give you time to use it. However, Mondial Change and its partners reserve the right not to accept extending the contract's maturity date.

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