Covering Foreign Exchange Risk in WST - Samoan Tala

The maximum amount of hedges in Samoan Tala (WST) that you can validate primarily depends on the size of the forward exchange line granted to you. The granted line conditions 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 the setup of hedges in Samoan Tala (WST) are included in the exchange rate communicated to you before validating your operation. The hedge setup is done by phone with a trading room 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 Samoan Tala (WST) hedging contracts if the EUR/WST rate (or any other pair on which you have validated a hedge) deteriorates beyond the variation margin or beyond your OTM. In such cases, you must deposit funds as collateral to keep your Samoan Tala (WST) 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 Samoan Tala (WST). You can draw down autonomously on the online platform as many times as you wish between the contract initiation and the maturity date of your forward contract in Samoan Tala (WST).

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 Samoan Tala (WST) contract by a few months to give you time to use it. Mondial Change and its partners reserve the right not to accept extending the contract maturity date.

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