FX derivatives

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That pro-rata portion will be determined by multiplying the total number of shares subject to this Award by the Applicable Fraction. We will then tell you the limit rate. If the limit rate is hit or exceeded at any time during the life of the trade, you are obliged to deal at the protected worst-case rate.

Keeping up with global FX markets requires responsive systems that can provide almost instantaneous execution. As well, FX risk is an enterprise-wide management challenge. Many legacy systems are often in silos and do not cover FX products, loans/deposits and short-term security finance in one integrated environment that can show the true risk.

Notwithstanding the foregoing, Good Reason shall only exist if Grantee shall have provided the Company with written notice within 90 days of the initial occurrence of any of the foregoing events or conditions, and the Company or any successor or affiliate fails to eliminate the conditions constituting Good Reason within 30 days after receipt of written notice of such event or condition from Grantee.

Common Stock specified in the Term Sheet, upon the terms and subject to the conditions set forth in the Term Sheet, these Standard Terms and Conditions and the Plan, each as amended from time to time.

For purposes of these Standard Terms and Conditions and the Term Sheet, any reference to the Company shall, unless the context requires otherwise, include a reference to any Subsidiary. Further, if for any reason this Award or portion thereof shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, such option subject to the Award or portion thereof shall be regarded as a Non-Qualified Stock Option granted under the Plan.

In no event shall the Company or any of its respective employees or directors have any liability to Grantee or any other person due to the failure of the Award to qualify for any reason as an Incentive Stock Option. After the Grant Date, subject to termination or acceleration as provided in these Standard Terms and Conditions, the Term Sheet, and the Plan, the Award shall become vested as described in the Vesting Schedule of the Term Sheet; provided that the Grantee remains continuously employed by the Company through each applicable Vesting Date.

That pro-rata portion will be determined by multiplying the total number of shares subject to this Award by the Applicable Fraction. For the avoidance of doubt, this Award may be exercised following termination only as to that number of shares as to which it was vested or became vested on the date of termination. The Company shall not be obligated to issue any shares of Common Stock until the Grantee shall have paid the total exercise price for that number of shares of Common Stock.

The exercise price may be paid in Common Stock, cash or a combination thereof, including an irrevocable commitment by a broker to pay over such amount from a sale of the Common Stock issuable under the Award, the delivery of previously owned Common Stock, withholding of shares of Common Stock deliverable upon exercise of the Option, or in such other manners as may be permitted by the Administrator. Fractional shares may not be exercised. Shares of Common Stock will be issued as soon as practical after exercise.

Notwithstanding the above, the Company shall not be obligated to deliver any shares of Common Stock during any period when the Company determines that the exercisability of the Award or the delivery of shares of Common Stock hereunder would violate any federal, state or other applicable laws. If the amount required is not paid, the Company may refuse to deliver the shares of Common Stock in settlement of the Award until such amount is paid. This structure provides a hedge rate at zero premium cost with the ability to benefit from a potentially unlimited favourable exchange rate move.

There is no premium payable for a tracker forward. To take out a tracker forward, you need to advise us of the amount, the currencies involved, the expiry date and the worst rate which you would like to buy your foreign currency. How a tracker forward works For example, you import materials from the US, and have to pay a supplier USD, in six months' time. The tracker forward provides protection for you to buy USD at a worst-case rate of 1. However, by the maturity date, you are obligated to buy USD from HSBC at the prevailing market rate less 4 cents, although the net rate cannot be worse than 1.

You are obliged to deal at the protected rate of 1. You are obliged to deal at 1. Stay focused on business by having the best FX derivatives behind your profits. Exporting is complex even without foreign currency fluctuations; our product profiles show how our tools work to protect you against volatility.

To take out an ARO contract, you need to advise us of the amount, the currencies involved, the expiry date and the worst rate which you would like to sell USD. You receive the USD, at the end of every month and sell them in the spot market as required.

If the average of the 12 monthly fixings is higher than the strike protection , HSBC will, at maturity, compensate you with a cash payment equal to the difference between the strike rate and the average rate over the period on your protected amount.

If, on the other hand, the average of the 12 monthly fixings is lower than the strike rate, then by dealing in the spot market, you will have been able to benefit from favourable currency rates over the year and you will allow the option to lapse. To take out a currency option, you need to advise us of the amount, the currencies involved, the expiry date and the exchange rate that you are looking to protect. How a currency option works For example, you export materials from the US, and need to sell USD, in six months' time to pay a supplier.

You exercise the right to sell USD, at 1. You let your currency option expire and simply sell USD, at the market rate of 1. This structure entitles you to sell foreign currency at a specified protected 'worst-case' rate of exchange or at a more favourable rate, as far as a predetermined 'best possible' limit rate. To take out an FE contract, you need to advise us of the amount, the currencies involved, the expiry date and the worst rate which you would like to sell your foreign currency.

You are entitled to sell dollars at 1. You are obliged to sell dollars at 1. You can sell dollars in the spot market at 1. If the limit rate is hit or exceeded at anytime during the life of the trade, you are obliged to deal at the original forward rate. To take out a forward extra plus contract, you need to advise us of the amount, the currencies involved, the expiry date and the worst rate which you would like to sell foreign currency.

How a forward extra plus works For example, you export materials to the US, and are due to receive USD, in six months' time. You can sell dollars in the market at 1. This structure provides a guaranteed hedge for the full exposure while allowing you to benefit from a favourable exchange rate move on a predetermined portion of your currency exposure.

To take out a participating forward contract, you need to advise us of the amount, the currencies involved, the expiry date and the worst rate which you would like to sell your foreign currency. We will then tell you the level of participation you can potentially benefit from. How a participating forward works For example, you export materials to the US, and are due to receive USD, in six months' time. You are entitled to sell USD, at 1. You are obliged to sell USD, at 1.

However, the remaining USD, can be sold in the spot market at 1. This structure provides protection at a pre-agreed 'worst-case' rate with the ability to benefit from a potentially unlimited favourable exchange rate move. There is no cash premium payable for a tracker forward. To take out a tracker forward, you need to advise us of the amount, the currencies involved, the expiry date and the worst rate which you would like to sell foreign currency.

How a tracker forward works For example, you export materials to the US, and are due to receive USD, in six months' time. The tracker forward provides protection to sell USD at a worst-case rate of 1. However, by the maturity date, you are obligated to sell USD, to HSBC at the prevailing market rate, plus 4 cents, although the net rate cannot be worse than 1.

You have the right to sell dollars at the protected rate of 1. Links on this page may allow you to access other websites. Please read the linked websites' terms and conditions. Please read the terms and conditions of the linked website, which may differ from the terms and conditions of hsbc.

This page, and the following pages, may contain information supplied by a third party. HSBC does not make any guarantee, representation or warranty and does not take responsibility as to the accuracy or completeness of such information. Global Banking and Markets Log on. Importers Tackling currency movements against imports requires tools specially made for import businesses.

Average rate option An average rate option ARO is a useful tool for companies that need to make or receive regular payments in foreign currency. We will then advise you of the premium you need to pay. This product is best explained with an example.

Advantages Provides protection on per cent of your exposure Allows you to benefit from favourable currency moves Flexible, in that you can decide the strike rate and the amounts at each fixing Disadvantages A premium is charged — this can be paid at any time during the life of the contract Key facts Available in any currency pair where there is a liquid forward market Important: Currency options A currency option provides you with the right to certain protection at a specified foreign exchange rate on a specific forward date.

Advantages Provides protection on per cent of your exposure Allows you to benefit in full from favourable currency moves Disadvantages A premium is payable Key facts No credit line required Available in any currency pair where there is a liquid forward market Important: Forward extra This structure entitles you to buy foreign currency at a specified protected 'worst-case' rate of exchange or at a more favourable rate, as far as a predetermined 'best possible' limit rate.

Advantages Provides protection on per cent of your exposure Allows you to benefit from favourable currency moves up to a pre-agreed limit No premium payable Disadvantages If limit rate is hit or exceeded at any time during the life of the contract, you deal at the worst-case protected rate The protected rate will always be less favourable than the forward rate Key facts A credit line is required Available in any currency pair where there is a liquid forward market Important: Forward extra plus This structure entitles you to buy foreign currency at a specified protected 'worst-case' rate of exchange or at a more favourable rate, up to a predetermined 'best possible' limit rate.

Advantages Provides protection on per cent of your exposure Allows you to benefit from favourable currency moves up to a pre-agreed limit No premium payable Disadvantages If limit rate is hit or exceeded at any time during the life of the trade, you deal at the original forward rate The protected rate will always be less favourable than the forward rate Key facts A credit line is required Available in any currency pair where there is a liquid forward market Important: Participating forward This structure provides a guaranteed protected rate for your full exposure while allowing you to benefit from a favourable exchange rate move on a predetermined portion of your currency exposure.

Advantages Provides protection on per cent of your exposure Allows you to benefit from favourable currency moves on a portion of your total exposure No premium payable Disadvantages The protected rate will always be less favourable than the forward rate Key facts A credit line is required but this is less than the equivalent forward Available in any currency pair where there is a liquid forward market Important: Tracker forward This structure provides a hedge rate at zero premium cost with the ability to benefit from a potentially unlimited favourable exchange rate move.

Advantages Provides protection on per cent of your exposure Allows you to benefit from favourable currency moves No premium payable Disadvantages The protected rate will always be less favourable than the forward rate Key facts A credit line is required Available in any currency pair where there is a liquid forward market Important: Exporters Stay focused on business by having the best FX derivatives behind your profits.

You buy an ARO that protects against the average exchange rate for the year rising above 1.