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Hedging Foreign Exchange Risk in TTD - Trinidad Dollar

Drapeau Hedging Foreign Exchange Risk in TTD - Trinidad Dollar

Foreign Exchange Risk Hedging on the Trinidad Dollar (TTD) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Trinidad Dollar (TTD). The foreign exchange risk hedging on the Trinidad Dollar 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. At 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 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 flow being paid in the non-convertible currency. You can schedule a meeting with our trading room. A market expert advisor will assist you in setting up your foreign exchange hedges on the Trinidad Dollar (TTD).

To obtain accurate quotes on your Trinidad Dollar (TTD) hedges, we invite you to contact our trading room.

Mondial Change answers all your questions about foreign exchange risk hedging for your operations in Trinidad Dollar (TTD)

Are there minimum or maximum amounts to set up hedges in Trinidad Dollar (TTD)?

The maximum amount of hedges in Trinidad Dollar (TTD) 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 below 10,000 EUR (or equivalent in other currencies).

What is the maximum possible maturity for hedges in Trinidad Dollar (TTD)?

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

What are the setup fees for hedging against foreign exchange risk in Trinidad Dollar (TTD)?

All fees related to the setup of hedges in Trinidad Dollar (TTD) are included in the exchange rate communicated to you before the validation of your transaction. The hedging is done by phone with a trading room operator. No fees are applied to the use of your hedges.

Is a security deposit required to take a hedge in Trinidad Dollar (TTD)?

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

Are there carry points or discount points on forward contracts in Trinidad Dollar (TTD)?

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

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