Hedging Product

• FX Forward
  FX Forward is foreign exchange transaction that trades a currency pair on a specific date in the future (more than two business days after the transaction date) with an agreed rate.
• Par Forward
  Series of FX Forward with different maturity date. Each FX Forwards have the same FX rate.
• FX Swap
  FX Swap is a transaction that trades a currency pair in an agreed amount and rate while at the same time agrees to reverse the transaction on a specific date in the future with an agreed rate
• FX Option
  FX option is a contract in which the holder acquires the right (not the obligation) to buy or sell a specific currency against another currency at an agreed strike price and period of time. To obtain the rights, the buyer has to pay premium to the seller.
• Mandiri Call Spread
  Combination of Buy Call Option and Sell Call Option with two different Conversion Rates. The purpose of this transaction is to hedge against exchange rate risk.
• Interest Rate Swap (IRS)
  IRS is a contract between two parties to exchange the cash flow of interest payment from floating rate to fixed rate, and vice versa. The principal is not exchanged under the IRS. The floating interest rate is determined by a benchmark interest rate agreed upon LIBOR (London Interbank Offer Rate), SIBOR (Singapore Interbank Offer Rate), JIBOR (Jakarta Interbank Offer Rate), etc.
• Cross Currency Swap (CCS)
  CCS is a contract between two parties to exchange the cash flow of principal and interest payment in different currency for a pre-determined future date. At the maturity date, the notional principal will be re-exchanged with the agreed rate on the contract.