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Perform
a Spot or Forward Transaction Summary
The Spot/Forward option allows you to do an outright trade from FX Web.
Spot Forward
Terms
and Labels Messages
Spot
Transactions
- Click Spot/Forward on the
Main Menu to display the Trade
Entry: Spot/Forward page.
The cursor is active in the Currency Code selection field.
Note: If you
don't need to select the currency type, go to step 3
- Select the currencies you want to buy and sell:
- Type the three-character currency code in the text box next to
the flag icon. OR
- Click the flag icon to open a table of available currencies to
buy and/or sell. Find and select the currency, and then click OK
to return to the Trade
Entry page.
- Type the currency amount in the box next to the currency code.
Optionally, click in Deal Details and type a note
about the trade.
- Do one of the following to commit the trade.
- To see the exchange rate before you complete the trade,
click Get Rate. After the rate appears, click
Accept.
- To complete the trade without waiting for a rate quote,
click Trade at Market.
A message appears to confirm the trade.
THIS IS YOUR LAST CHANCE TO CANCEL THE TRADE ONLINE.
- Click OK or Cancel to
commit or cancel the trade. If you click OK,
a confirmation page appears.
- Click Acknowledge. Payment
and Receipt buttons appear to select and
define settlement instructions.
Note: If you
are not authorized to complete delivery details, then you are done.
Click Back to return to the Trade
Entry page or Menu to return to the
Main Menu.
- Click Payment on the confirmation page
to open the Delivery Details for Trade page.
Note: If you are purchasing foreign currency,
you may have a preset U.S. Bank account for the payment side of the
deal.
- Open the dropdown lists and select a payment Method
and instruction Set.
- Verify, enter, or update settlement instructions. If the text
on the Beneficiary tab is not editable,
then U.S. Bank and/or your administrator have set up the instruction
set in advance.
- Click Insert, and then OK
at the confirm message.
- Optionally, click Update or Delete
to edit or remove the instructions you entered, and then click OK
and repeat step 7.
- Finalize the instructions by clicking Complete,
and then OK.
- Click Receipt and verify, enter, or update
the receipt instructions, and then Insert
and Complete them as you did with payment.
- Click the Back or Menu
navigation button to leave the transaction. Click Logout
to exit FX Web.
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Summary
You can use FX Web to obtain a rate now for exchange on a date in the
future up to one year out. To complete a Forward transaction, follow the same
steps as for a Spot transaction, except enter a value or values in one or both
of the date fields. Forward-Outright
- Click in the Value Date field and type the month, date, and
year in MMDDYY format. FX Web inserts the slashes automatically.
- Do the same
steps as for a Spot transaction.
Forward-Variable
Date - Click in the Variable Delivery Date field
and type earliest date within a range to complete the transaction. Use
the MMDDYY format.
- Click in the Value Date field and type the due
date, that is, the date by which the transaction must be completed.
- Do the same steps as for a Spot transaction.
Return to Help Contents
and Contact Page Return
to Top Terms and Labels
| Term or Field | Description |
| European Terms |
European terms are rates quoted as the number
of foreign currency units required to exchange for one U.S. Dollar.
For example, the rate "1.5" in European terms for Canadian dollars
means that it takes 1.5 CAD to equal 1 USD. |
| Forward Rate |
The forward rate applies when you enter a Forward transaction and is the exchange
rate other than Spot. For Canadian dollars, the first "forward" value date is
two (2) days after the date of the transaction. For other currencies, the forward
date is (3) days after the date of the transaction. In general, the limit for
a forward rate date is one year from the transaction date. A date farther into
the future than one (1) year requires special internal approval between banks
and other parties to the transaction. | |
Forward Transactions | Forward transactions
buy or sell foreign currency for delivery three or more business days after the
foreign exchange Trade Date. In FX Web, you can enter in to a forward transaction
to be delivered up to a year after the Trade Date for most currencies. The pricing
of a forward transaction is determined by the spot rate, adjusted by the interest
rate differentials of the two currencies. The availability of forward prices in
any currency is always subject to changing regulations, market conditions, and
other variables. One variation on a forward transaction is an option dated or
"window contract" which settles at a fixed rate for a variable date, defined by
a start and end date. In FX Web, the start date field for option date forward
is labeled "Variable Delivery Date." | |
Outright Transactions |
Outright transactions are the simple purchase
or sale of one currency against another, usually the U.S. Dollar.
(USD). An outright transaction may be a spot or a forward deal, depending
on the value date. |
|
Settlement Instructions | Settlement
instructions direct U.S. Bank to see that the purchased and sold currencies go to
the appropriate accounts and that the moneys transfer according to their prescribed
methods. The Receipt tab for purchases include these entities - Beneficiary
is the receiver of the funds. The individual bank account of the receiver goes
into the Account box.
- Account With is for the banking institution that is
to receive the foreign currency.
- Intermediary is a banking institution that
handles currency delivery for the Account With bank.
- Details refer to the
SWIFT standard "4 lines of narrative" each line is limited to 36 characters.
-
Correspondent is the payer's partner institution for this exchange. Not editable.
| | Spot Transactions |
Spot trades buy or sell foreign currency
at a rate against another currency (usually the U.S. Dollar.). Spot
refers to the deal being processed on "the spot" or today, settling
in the respective financial institutions within one or two business
days after trade date |
| Trade Date
| Trade date refers to the date that you commit
the trade on FX Web, usually today's date. To commit the trade is to accept the
rate and acknowledge that the details are correct. |
| Value Date |
Value date is the date that a transaction settles and moneys are delivered. The
rate for a trade is determined by the current spot rate, adjusted by the forward
premium or discount points. A contract value date must be a business day in both
countries involved in the foreign exchange. | |
Variable Delivery Date | On the Trade/Entry
screens, this date is the start date of a range for a Forward Variable trade.
The date combines with the Value Date to set a range of dates in which the trade
can be executed. |
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Messages
| Message | What
it Means/What to Do | | Trade Date is
greater Value Date | The Value Date date is
in the past. Retype the date to equal today's date, or later for Forward trades.
| | Near Rate is out of Tolerance
| The feed of the market rate is down or too slow
for FX Web. You can probably get past this message by selecting Trade at Market,
which bypasses the view of the rate. If this is unacceptable, contact your dealer
to make the trade. | | Trade Date is
Greater than Option Date | You entered Variable
Delivery Date value in the past. The Trade date is today's date. FX Web automatically
adjusts the Variable Delivery Date back to the default date, which is the Value
Date. You need to reenter a date that is at least equal to the trade date. |
| Near Buy Amount Exceeds Maximum Amount
| FX Web assigns an upper limit to the amount of
a given currency that you can buy. Enter a lower amount or contact your dealer
to make the trade. | | Weekend date
or Invalid date | You entered a forward
Value Date or Variable Delivery Date that is not a regular business day in at
least one of the countries involved in the trade. Enter a new date. |
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