Tanner Corredores de Bolsa offers its clients the chance to engage in foreign currency trading, such as spot purchases/sales and foreign currency forwards.
Forward transactions are contracts where the client buys or sells a given foreign currency in the future either for hedging or investment/speculation purposes. Clients use foreign currency hedges to protect themselves from exchange rate variations (exporters and importers). With speculative forwards, clients are looking to make a profit on variations in the price of one or more foreign currencies. The latter must be made by sophisticated investors given the high risk and leverage.
Risk: The risks for both types of transactions are different. Risk is limited in hedging forwards. With speculative forwards risk is very high considering the leverage that can be obtained with respect to the guarantees established for that purpose. Before investing in this product, one must properly inform oneself of the risks.