Fixed-date forwards
One amount, one settlement date, one rate. The right fit when the invoice date and amount are both reasonably certain.
Forwards vs spot
Forward contracts · Wholesale clients
Know what your next foreign payment will cost, months before it falls due.
Lock in future exchange rates to protect your margins and gain certainty over cash flows. Fixed-date, window and layered forwards, with tenors from a few days to 24 months and beyond, subject to approvals.
Your enquiry goes straight to an advisor. We usually reply within one business day.
Forward contract · Buy USD
Illustrative
Your AUD cost, fixed today
- You buy
- USD 500,000
- Settlement
- In 120 days
- Spot today
- 0.6981
- Forward rate
- 0.6985
You pay at maturity
AUD 715,820
- 2001 Founded
- AFSL 259763 Verify on ASIC's register (opens in a new tab)
- AFCA member External dispute resolution
- 24 months+ Tenors, subject to approvals
Why use a forward
Remove the exchange rate from a payment you already know about
Forward contracts remove uncertainty from known FX exposures: purchase orders, recurring supplier payments or contracted revenue in foreign currencies.
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Protect quoted prices and margins
A 5% adverse move on a USD 240,000 payment is roughly AUD 17,200. On a shipment with an AUD 60,000 gross margin, that is 30% of the profit gone.
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Improve budgeting accuracy
Your AUD cost is set on the day you deal, so the budget, the board pack and the landed cost all use the same number.
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Reduce sensitivity to market volatility
AUD moves on iron ore, China data, RBA decisions and US rates. A forward takes those moves out of the payments you have committed to.
How a forward contract works
Three moments, one agreed rate
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Today
Lock in the rate
You agree the currency, amount, settlement date and rate with your advisor. A written trade confirmation follows.
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Contract period
The market moves, your rate doesn't
If the invoice date shifts, the contract can be drawn early, extended or closed out, and we show you the cost of each before you decide.
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Maturity
Exchange at the agreed rate
You pay the AUD you locked in and receive the foreign currency to pay your supplier, whatever spot is doing that day.
A worked example
What a forward does to a USD 500,000 payment
A Melbourne homewares importer owes a supplier USD 500,000 in 120 days. Spot is 0.6981 and the 120-day forward prices at 0.6985. Booking the forward fixes the cost at AUD 715,820.
Here is what the same payment would have cost unhedged, at three possible spot rates on the day it falls due.
Illustrative figures, not a quote, using the indicative AUD/USD mid-market rate from Open Exchange Rates as at 20 October 2026, 5:00pm AEDT. Adapted from our article Forwards vs spot: hedging AUD supplier payments.
| Spot at maturity | Unhedged cost | Forward vs unhedged |
|---|---|---|
| AUD rises to 0.7281 | AUD 686,719 | Costs AUD 29,101 |
| AUD unchanged at 0.6981 | AUD 716,230 | Saves AUD 410 |
| AUD falls to 0.6681 | AUD 748,391 | Saves AUD 32,571 |
Gold bars show where the forward saved money against waiting; outlined bars show where it cost more. If AUD rises, the forward costs more than waiting would have. That is the trade-off: you give up the upside to know your cost on day one.
Have a payment due in the next 24 months?
Tell us the currency, amount and date, and your advisor will come back with a forward rate. Ask for it broken into spot and forward points so you can check it.
Structures we commonly use
Match the contract to how your cash actually moves
We align notional amounts and tenors to your underlying exposures, liquidity and risk appetite.
Window forwards and flexible drawdowns
Draw the currency on any business day within an agreed window, in one lot or several, at the agreed rate. Useful when shipping dates slip.
When the invoice date movesLayered hedging programmes
A rolling ladder of forwards that covers more of the near months and less of the far ones, so your average rate moves gradually rather than all at once.
The 12-month framework
Before you deal
Risk and considerations
Forwards create an obligation to exchange currency at an agreed rate and date. We help you understand the impact of:
- Over-hedging and under-hedging. Cover more than the exposure and you hold a position with nothing behind it.
- Early drawdowns or extensions. Moving the date settles the forward points, and the spot move if the contract is rolled.
- Mark-to-market movements. The contract gains or loses value as the market moves, and that shows in your accounts.
What you receive
Governance and documentation
We support your internal governance requirements with clear trade confirmations, reporting and market commentary in plain English.
- Written confirmations for every trade.
- Reporting your auditors and board can follow.
- Integrated with your FX policy, so each forward ties to a documented exposure.
Forward trading is subject to our standard terms, credit approval and documentation.
Who you deal with
The advisor who quotes your forward manages it to maturity
We are a boutique advisory in Chatswood, NSW, working with wholesale clients whose annual FX programmes run from $2M to $200M. One advisor follows your exposure from policy through settlement, by phone and email. There is no portal to learn.
Meet the team-
Christopher Biltoft Senior FX advisor
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David Dowling FX advisor
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Amy Wilcox FX advisor
Who can book a forward with Forex Plus?
We act for wholesale clients only, as defined in s761G of the Corporations Act 2001 (Cth). Our article on who qualifies as a wholesale client sets out the tests.
How long can a forward run?
From a few days to 24 months and beyond, subject to approvals. Our layered hedging framework shows how importers cover the next 12 months in steps.
How is a forward priced, and what do you charge?
The forward rate is spot adjusted by forward points, which reflect the interest rate gap between the two currencies, not a forecast. Our margin is built into the all-in rate we quote. There is no monthly minimum and no inactivity fee. Why forward points are not a forecast
What if my supplier invoices early or late?
You can draw the forward early, extend it or close it out. Each one settles the forward points for the change in date, and extending or closing out also settles the spot move since you dealt. We show you the figures before you decide. Extending, pre-delivering and closing out
Do I need a credit facility?
Forward trading is subject to our standard terms, credit approval and documentation. Your advisor will take you through what applies to your business before your first trade.
How do forwards show in our accounts?
A forward is revalued to market at each reporting date until it settles. Our article covers what auditors look for in valuation, hedge designation and AASB 7 disclosures. Mark-to-market for FX forwards
What happens if the market moves in my favour?
You still exchange at the agreed rate. In our worked example, if AUD rose to 0.7281 the forward would cost about AUD 29,100 more than waiting. You give up that upside in exchange for a known cost on day one.
Further reading
- Forwards vs spot: hedging AUD supplier payments When predictable foreign payments are more than a few weeks out, spot conversion is usually the wrong call. A walk through forwards vs spot.
- Mark-to-market for FX forwards: what auditors want Mark-to-market for FX forwards: what auditors look for in valuation, hedge designation, effectiveness testing and AASB 7 disclosures.
- Layered hedging: a 12-month framework for importers A 12-month framework for Australian importers running $5–50M programmes: the 75/50/30/15 cascade, instrument selection, and governance.