Tanner Stockbrokers offers its customers the ability to conduct operations in foreign currencies such as spot sales and forward sales in foreign currency.
The forward operations are contracts where the customer buys or sells a particular foreign currency at a future time, for hedging transactions, as well as for investing or speculation operations. Through the first ones, customers seek to protect from variations in the exchange rate (exporters and importers). Meanwhile, in the forward operations of investment or speculation customers seek to profit from changes in the price of one or more foreign currencies. These latter operations must be carried out by sophisticated investors given its high risk and leverage.
Risk: Risks for both types of operations are different. In the forward hedging transactions the risk is limited. In the forward of investment or speculation the risk is very high considering the leverage that can be obtained in relation to the guarantees provided for that purpose. Before investing in this product, it is necessary to be adequately informed of the risks.