FX Derivative Products

Explore the range of FX derivative products available to professional clients only, offered by Monex Europe Markets Limited.

About Monex Europe Markets Limited

For professional clients only, Monex Europe Markets Ltd is authorised and regulated by the Financial Conduct Authority (registration number 596146) and is the sister company of Monex Europe Limited, offering foreign exchange derivatives trading on either an advised or execution-only basis.

With a of range of FX derivative products for FX exposure management and hedging strategies, we are able to offer bespoke solutions built with your desired risk appetite, hedging priorities and internal treasury policies in mind. Together with our award-winning analysis team and FX structurers we will engage with you to develop innovative risk management strategies.

FX hedging solutions

FX risk can be transactional, translational or economic in nature, and this means that each company may benefit from a tailored FX risk management and hedging policy. At Monex, we can assist with creating and monitoring this policy as markets and businesses evolve over time. Flexibility is key, and our dedicated team can assist by analysing your FX exposure and creating a portfolio of hedging instruments to diversify your approach. Once implemented, we can regularly review the performance of your hedging programme to help it remain aligned with your key objectives and to ensure it is performing as intended.

Whether you want to protect certain rates, participate in favourable moves or out-perform the market, we are able to offer strategic support to companies throughout every step of the journey. Please get in touch with your Monex contact to speak with our derivatives structuring team to discuss how we can help you.

FX advisory

Our team of dedicated traders can structure suitable hedging solutions which reflect your commercial objectives, thus, enabling you to take control of the currency exposures on your balance sheet and to hedge your currency risk against future movements in exchange rates. We facilitate a range of products including deliverable and non-deliverable FX forwards, swaps and options. Your dedicated trader is here to help you understand which FX strategy or product may be best suited to your requirement.

Non-deliverable forwards (NDFs)

A non-deliverable forward (NDF) is a type of contract that allows companies to offset the financial impact of currency movements. An NDF is most commonly used in markets where local currency controls restrict the availability of standard forward contracts, or where physical exchanges of currency are not required.

An NDF is a cash-settled forward contract. Instead of exchanging notional currency amounts on the value date, the trade is closed out, which generates either a positive or a negative cash flow. The exchange of cash flow is usually directly opposite to the clients underlying exposure. If the rate of exchange when the contract is closed out is worse than the rate of the NDF contract, the client will receive a positive cash flow to offset this. If the rate of exchange is better than the rate of exchange of the NDF contract, the negative cash flow will offset this. The benefits of an NDF are that they allow you to hedge a currency exposure to a restricted currency that you would not be able to hedge using traditional methods.


A forward contract is a customised OTC contract between two parties to buy or sell an asset at a specified price on a future date. A forward contract can be used for hedging or speculation, although its non-standardised nature makes it particularly apt for hedging. This includes balance sheet hedges and loan hedging.

This type of forward contract, where the purpose is not to facilitate a payment for identifiable goods and services or direct investment can only be offered by an investment firm.

Disclaimer: Monex Europe Markets Ltd (“MEM”) is an authorised and regulated investment firm – FCA reference number 596146. MEM is a company registered in England and Wales – No. 08357567. MEM may conduct trades on a restricted advisory basis and services are available to Professional clients only. Foreign exchange options and other derivative products are not suitable for everyone and may present a high level of risk to your capital. You should seek independent advice if necessary.

Become a client

Find out more about our full range of services by talking to one of our experienced FX specialists on +44 (0) 203 650 6310