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Hedge Foreign Exchange Risk in TOP - Tongan Paʻanga

Drapeau Hedge Foreign Exchange Risk in TOP - Tongan Paʻanga

Foreign Exchange Risk Coverage on Tongan Paʻanga (TOP) with Mondial Change

Mondial Change enables you to hedge your foreign exchange risk on Tongan Paʻanga (TOP). Currently, foreign exchange risk coverage on Tongan Paʻanga can only be achieved 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's 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 respective country. The NDF price represents the probability of a currency revaluation (or devaluation). 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 in the non-convertible currency. You can schedule a consultation with our trading desk. A market expert advisor will assist you in setting up your foreign exchange hedges on Tongan Paʻanga (TOP).

To obtain accurate quotes on your hedges in Tongan Paʻanga (TOP), we invite you to contact our trading desk.

Mondial Change Answers All Your Questions on Foreign Exchange Risk Coverage for Your Operations in Tongan Paʻanga (TOP)

Are there minimum or maximum amounts for setting up hedges in Tongan Paʻanga (TOP)?

The maximum amount of hedges in Tongan Paʻanga (TOP) 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).

What is the maximum possible maturity for hedges in Tongan Paʻanga (TOP)?

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

What are the setup fees for hedging against foreign exchange risk in Tongan Paʻanga (TOP)?

All fees related to setting up hedges in Tongan Paʻanga (TOP) are included in the exchange rate communicated to you before the validation of your transaction. The hedging process is conducted over the 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 Tongan Paʻanga (TOP)?

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 Tongan Paʻanga (TOP) if the EUR/TOP 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 maintain your contracts in Tongan Paʻanga (TOP) 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 Tongan Paʻanga (TOP)?

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

YOUR HEDGING NEED IN TOP
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