Hedging Foreign Exchange Risk in XCD - Eastern Caribbean Dollar

The maximum amount of hedges in Eastern Caribbean Dollar (XCD) 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. 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 the setup of hedges in Eastern Caribbean Dollar (XCD) are included in the exchange rate communicated to you before the validation of 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 your line conditions, margin calls may be triggered on your hedging contracts in Eastern Caribbean Dollar (XCD) if the EUR/XCD rate (or any other pair on which you have validated a hedge) deteriorates beyond the variation margin or beyond your OTM. You must then deposit funds as collateral to keep your Eastern Caribbean Dollar (XCD) 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 Eastern Caribbean Dollar (XCD). 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 Eastern Caribbean Dollar (XCD).

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 Eastern Caribbean Dollar (XCD) contract by a few months to give you time to use it. Mondial Change and its partners, however, reserve the right not to accept postponing the contract's maturity date.

It all depends on whether you are a buyer or seller of Eastern Caribbean Dollar (XCD) and against which currency you are trading the Eastern Caribbean Dollar. If we take an example against the euro: If you are a buyer of Eastern Caribbean Dollar (XCD) against the EUR, then there are report points because the interest rate of the Eastern Caribbean Dollar (XCD) is supérieur to that of the EUR. Conversely, if you are a seller of Eastern Caribbean Dollar (XCD) against the EUR, then there are déport points.