Products

Foreign Exchange Products

At GFX we offer our clients a wide variety of products to accommodate tailor-made FX payment solutions

Spot FX

Spot FX transactions are binding transactional agreements that lock in the price of one foreign currency in exchange for another foreign currency, contracts which usually settle one or two days after the transaction is entered into. When it comes time to settle a spot transaction a client will send to GFX the currency that they have bought or sold  and then we will send the equivalent corresponding currency to our client or directly to one of our clients vendors.

A GFX client received payment for services they provided to a US based client in US dollars into thier US dollar account at their Canadian bank. The client called GFX (or logs into our internet trading platform) and sells those US dollars to GFX at an agreed price for the equivalent Canadian dollars. This type of transaction will usually settles either the same day or the day after the price has been agreed upon.

Forward FX Contract

A Forward FX transaction acts in exactly the same manner as a spot transaction but guarantees the price of a foreign currency conversion at a specified date in the future. At GFX we understand the importance of hedging to protect against volatile market conditions and quite often use Forward contracts as a way to eliminate client currency risk.

A client knows that he will need to pay a US based supplier US dollars in one months time. The client likes the USD/CAD exchange rate today so he locks in the rate today but uses a forward contract to arrange delivery in one months time.

Option Dated Forward Contract

An option dated Forward contract or "Forward Window Contract" as it is commomly referred to works in the same manner as a Forward Contract but allows the client flexability when they want to actually settle the transaction. Our clients may select a range of dates rather than a specific date for settlement of the transaction. This type of contract is extremely beneficial to companies who know they are going to have a foreign currency exposure in the future but are not sure of the exact date that the payments will be required.

A client knew that in 3 months time he would be receiving a Euro payment from a shipment that he had sent over to a client. GFX was able to buy the Euro from him in the spot market at a very favourable rate for the client. We then gave the client the ability to complete the transaction whenever they received the Euro over an agreed one month time frame.

Options

An option contract gives the purchaser of the contract the right, but not the obligation, to buy or sell a specified quantity of a currency at a specific price within a specified period of time.

GFX had a client that needed to protect some US dollar denominated assets that it had to revalue in Canadian dollars at the end of the month for accounting purposes. The client purchased a US dollar "put" option which gave them the right but not the obligation to sell US dollars at an agreed upon price. This allowed the client to protect the monthly net income and took out any currency risk from their business

Order Management System

GFX encourages all of our clients to maximise their foreign currency exposure by taking advantage of movements in the markets. Through our access to the market we are able to keep our clients informed of currency movements in their favour and can indicate levels that a client may wish to transact. This order execution system can take several forms;

Intra-day order - An order left during normal business hours to sell or buy a currency at a particular rate. If the currency price moves to the level of your order your transaction is completed. An intra-day order normally expires at the end of the Canadian business day.

Overnight Order - Is the same as an intra-day order but is left in the overnight markets and monitored by GFX overnight. The client is then informed in the morning if the order was executed in the overnight market.

Stop Loss Order - A stop loss order is normally left in conjunction with an intra-day order or overnight order and it is left at a level that will limit losses and protect profits.

SRED Claims

The Scientific Research and Experimental Development Program or as it is commonly known SRED claims are a program offered by the various levels of Canadian Governments that provide tax credits to companies that do any research and development work in the normal course of their business. Each year the Canadian Government gives away well over $1.5 Billion dollars to companies and other taxpayers to help encourage development work

Through our strategic partnership with Pinnacle Consulting Group, GFX is able to offer our clients added value in helping them with their application in applying for these government credits. Pinnacle has many years experience in preparing these applications and continually excels in getting refund cheques for their clients.

If you have never filed a SRED claim please contact GFX and will gladly talk to you about this important program

Asset Backed Financing

Through our relationship with Greenfield Financial Group, GFX is in a very unique position that we can offer our clients speciality financing opportunities when more traditional financing opportunities are not available.

Through Greenfield we can offer our clients asset back lines of credit from $500,000 to $7 million , factoring opportunities for lines of credit and mezzanine debt financing. This type of financing is useful to companies that have an insufficient track record to borrow money, have inventory that can be used to finance, have high amounts of accounts payable, little or no equity or have foreign account Debtors.

If you have an interest in learning more about Asset Backed Financing please call GFX and one of our currency advisors will be able to answer your questions.