Operations

• Fax Banking Applications

TOD, TOM, SPOT, Forward, SWAP

• TOD: Allows applying for currency exchange upon the exchange rate of the date when the order is executed. All the transactions are executed at the same day.
• TOM: Allows you to sign a buy/sell contract a day before the date of execution, thus minimising the currency risk.
• SPOT: transaction is similar to TOM, however, the order will be executed on the third day after the Bank and the Client have signed the agreement.

Forward Contract

Forward transactions are based on the same principle as TOMorrow and SPOT transactions: The agreement about currency conversion at a certain rate is signed at a time before the date of order execution. The difference is that forward transactions contracts are signed for a much longer terms - up to one year.

At the time of signing a forward transaction contract, the client makes a security deposit of 5% of the contract value in a bank account. After the transaction was executed, the client receives this deposit back. Any losses which may occur due to exchange rate fluctuations are covered with the deposit.

SWAP

SWAP is a banking transaction that consists of two opposite conversion transactions over the same amount of money. In a SWAP transaction, the bank first buys a certain amount of currency from the client; then after a defined period of time, it sells it back to the client. Also in this transaction, the client beforehand knows both exchange rates.

The SWAP transaction has an important advantage: The client knows the exchange rates, and therefore, can avoid the market rates fluctuations. This service is popular among financial and trading companies. For example, the company with dollars on the account buys and sells goods using Euro. The SWAP transaction allows to define the price of goods no matter what the currency market will be.

Margin Trading

Margin trading is a unique global currency trading system. It was developed recently and is very popular worldwide, especially in the USA and in Great Britain.
With Margin trading, anyone can participate in SPOT trading 24 hours a day. Margin trading is unique because with its help you can make deals with minimal spreads for considerable amount of funds, having only a fraction of the needed amount.

The smallest value of a Margin Trading deal is 100 000 USD. The volume of larger deals has to be multiples of 100 000 USD.

To open a margin trading account, the client is required to make a security deposit of 5% of the contract value, in order to cover possible losses. Every time the security deposit decreases in value, money must be added to reach the originally required amount.

Buy/Sell on Fixed Rate

A Fixed Rate Buy/Sell Deal means to order a purchase or sale of currency at a preferential rate, that is different from the market rate. Such an order is executed once the market rate reaches the rate fixed. Such orders can be withdrawn before its execution.

List of currencies available for operations

Rietumu Banka exchange rates are updated several time a day and depend on situation on financial markets.
When exchanging over 5'000 euro you may negotiate a preferable rate with dealer.
There are no additional fees for currency exchange.