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Hedge Foreign Exchange Risk in GIP - Gibraltar Pound

Drapeau Hedge Foreign Exchange Risk in GIP - Gibraltar Pound

Foreign Exchange Risk Coverage on Gibraltar Pound (GIP) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Gibraltar Pound (GIP). The foreign exchange risk coverage on the Gibraltar Pound can currently only be done through NDF (non-deliverable forwards) contracts. The NDF is a hedging instrument used to cover your foreign exchange risk on partially or non-convertible currencies. On the contract expiration date, the rate at which the contract was concluded is compared with the fixing rate. The latter is official and published daily by the Central Bank of the concerned country. The NDF price represents the probability of a revaluation (or devaluation) of the currency. Therefore, the NDF price will not be linked to the interest rate differential between the two currencies involved. The NDF thus allows you to hedge your foreign exchange risk without any cash flow being transferred in the non-convertible currency. You can schedule a meeting with our trading desk. An expert market advisor will assist you in setting up your foreign exchange hedges on the Gibraltar Pound (GIP).

To obtain accurate quotes on your Gibraltar Pound (GIP) hedges, we invite you to contact our trading desk.

Mondial Change answers all your questions about foreign exchange risk coverage for your Gibraltar Pound (GIP) operations

Are there minimum or maximum amounts to set up hedges in Gibraltar Pound (GIP)?

The maximum amount of hedges in Gibraltar Pound (GIP) 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 less than 10,000 EUR (or equivalent in other currencies).

What is the maximum possible maturity for hedges in Gibraltar Pound (GIP)?

Generally, we do not offer hedges in Gibraltar Pound (GIP) for maturities exceeding 24 months, but this can be considered on a case-by-case basis. Please contact our trading desk for a personalized study of your needs.

What are the setup fees for foreign exchange risk hedges in Gibraltar Pound (GIP)?

All fees related to the setup of hedges in Gibraltar Pound (GIP) 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.

Is a security deposit required to take a hedge in Gibraltar Pound (GIP)?

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 Gibraltar Pound (GIP) hedging contracts if the EUR/GIP 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 Gibraltar Pound (GIP) contracts open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.

Are there forward points or discount points on forward contracts in Gibraltar Pound (GIP)?

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

YOUR HEDGING NEED IN GIP
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