Placing a Forward Order

You can create forward market orders, entry orders, and stop/limit orders, or even OCO orders, just like with spot instruments.

You can place a forward order by right-clicking on a dealing rate (Dealing Rates, Dealing Rates Table, Instruments windows), or by clicking one of the buttons on the Forward toolbar:



When forward trading is available on a Forex instrument, the dealing rate right-click menu will include Spot and Forward order sub-menus:




Note: Since forwards are only available on Forex instruments, the ‘Spot’ and ‘Forward’ sub-menus only appear for Forex instruments.

Creating a Forward Market Order

The New Forward Position (market order creation) dialog resembles the one for spot orders, with three additions: Value Date, Swap Rate, and the resulting Forward Rate.

Once you select a Value Date, the Swap Rate and Forward Rate are calculated automatically.


FORWARD ORDER                                                SPOT ORDER

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The Swap Rate is displayed with a +/- symbol depending on if it’s added or subtracted from the Spot Rate. If the Swap Rate improves the trader’s rate, it is displayed in green. If the Swap Rate worsens the trader’s rate, it is displayed in red.

To place a Forward order, you must enter a value date in the Value Date field, or select a value date from the calendar by clicking on the arrow next to the date.

Note: The Value Date for forwards is a delivery date at some predefined point in future. If the forward position has not been closed by end of trading on the value date, then the forward will expire and the position will be closed automatically. A trader defines Value Date himself (from 3 business days to 6 months), while creating a forward order. Value Date directly affects the forward rate (see Forward Rate Calculation)  

Value Date constraints

The Value Date cannot be on a weekend. Because spot trades have a settlement date of 2 days, the earliest available Value Date for a forward trade is a weekday 3 business days from the current day. (If today is Tuesday, the nearest Value Date is Friday. If today is Wednesday, the nearest Value Date is Monday.)




This video clip shows how to select the value date and create a forward order.


Forward Conditional Orders

Forward Entry, Stop, Limit orders creation window shows the current and desired forward order prices and the value date drop down box: