TOD transaction is a foreign exchange transaction of buying or selling foreign currencies where the settlement is done in the same day with the deal date when transaction occurred.
TOM
TOM transaction is a foreign exchange transaction of buying and selling foreign currencies where the settlement is done 1 (one) business day after the deal date when transaction occured.
SPOT
SPOT transaction is a foreign exchange transaction of buying or selling foreign currencies where the settlement is done 2 (two) business days after the deal date when transaction occured.
FORWARD FORWARD transaction is a foreign exchange transaction of buying or selling foreign currencies where the settlement is done more than 2 (two) business days after the deal when transaction occured.
SWAP
SWAP transaction is a transaction of "sell-buy" or "buy-sell" of one currency to another which is done at the same time, with the same counter party, base on agreeable exchange rate and term, in consideration of interest rate differential of both currency.
B. Foreign Currencies
USD, JPY, EUR, SGD, CHF, AUD, HKD, GBP, THB (for TT)
USD, JPY (for Bank Notes and TC)
C. Benefit
- To fulfill and accommodate the customer needs.
- As one alternative hedging instrument of customer for example export process, foreign
exchange obligation and maturity loan.
D. RISK
1. Market Risk
Risk occurred due to foreign exchange rate volatility.
2. Operational Risk
Risk occurred due to the dysfunction of internal process, human error, system failure or
external problem.
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