Hedging Foreign Exchange Risk in VND - Vietnamese Dong

The maximum amount of hedges in Vietnamese Dong (VND) 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 Vietnamese Dong (VND) are included in the exchange rate communicated to you before the validation of your transaction. 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 Vietnamese Dong (VND) if the EUR/VND 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 contracts in Vietnamese Dong (VND) open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.

There is no minimum amount for drawdowns on your flexible forward contracts in Vietnamese Dong (VND). You can draw autonomously on the online platform as many times as you wish between the time of contract initiation and the maturity date of your forward contract in Vietnamese Dong (VND).

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 the rate of your contract. Alternatively, you can request Mondial Change to extend your contract in Vietnamese Dong (VND) by a few months to give you time to use it. Mondial Change and its partners reserve the right not to accept the postponement of the contract's maturity date.

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