Product Information

NOTE: If any words are capitalised, please refer to the definition section at the back for a definition.
 
1          GENERAL INFORMATION
 
1.1       Service Provider
 
The CanadianForex service is provided by CanadianForex Limited (CN: 674939-9) which is part of the global OzForex Group. CanadianForex is a wholly owned subsidiary of OzForex Pty Ltd (ACN: 092 375 703), an Australian company whose main shareholders include Accel Partners and the Carlyle Group in the US, and Macquarie Bank in Australia.
 
OzForex holds an Australian Financial Services Licence (No: 226 484) allowing it to deal and advise in relation to foreign exchange transactions. As an AFSL holder, it is regulated by the Australian Securities and Investment Commission ("ASIC"). OzForex is audited annually by PricewaterhouseCoopers and internally by Ernst & Young and is subject to the reporting and disclosure obligations that apply to financial advisers under the Corporations Act 2001 in Australia.
 
1.2       No Financial Advice
 
The information contained in this document is general in nature and is provided purely for information purposes. You will also find on our website some useful historical data and some charting and research tools. Additionally, we may also provide you with general oral advice about how foreign exchange transactions work during the course of our dealings with you. Please note however that none of the information we provide to you, either on our website or over the phone, will take into account your personal financial circumstances and needs. You will always need to exercise your own judgement and should obtain independent financial advice as to the amount, type and timing of any particular transaction you enter into with us.
 
1.3       Contact Us
 
If you do not understand any part of this document or anything on our website, or require further information, please contact us by telephone on 1800 680 0750 (Canadian Local Call) or +1 416 649 8600 or by email on info@canadianforex.ca.
 
1.4       Client Agreement
 
You will need to enter into a Client Agreement with us before we provide you with our service. We have two client agreements: one for companies and one for individuals. You must ensure that you fully understand the terms set out in the relevant Client Agreement before you transact with us.
 
1.5       FINTRAC Registration
 
CanadianForex is registered with FINTRAC (Registration No. M08560392).
 

2          THE SERVICE
 
2.1       Our Service
 
We provide a 24 hour international online money transmission service. You can enter into an agreement with us to send your money overseas either immediately (ie: within the next 2 days) or at any time within the next 12 months.
 
2.2       Accessing and Using the Service
 
You can access our service directly online, by telephone or by email. We do not accept communications by fax. The simplest way to access our service is to register on our website at www.candianforex.ca. Registration is quick, costs nothing and is obligation free. Before we can process a transaction for you, we will ring you and will ask you to comply with our identification procedures. The identification procedures are required by legislation (and apply to all money transmitters); as they are a legal requirement, it is very important that they are properly carried out even if they are a little bit inconvenient.
 
After you are fully registered, you can book exchange rates with us 24-hours a day Monday to Friday. Once a transaction is booked, we ask you to pay the money you are transmitting into one of our accounts, either immediately or on the Maturity Date, then we convert it into the foreign currency and credit the Beneficiary Account you have nominated in the agreed amount of the foreign currency. Our service is very quick, but the actual time between booking a transaction and receiving the money in the Beneficiary Account will vary according to the currencies involved.  
 
2.3       Deliverable Only Service
 
We are a money transmission business only. We do not facilitate any kind of margin or speculative foreign exchange trading activities. In all cases, you must deliver to us the full amount of the funds you are exchanging. We do not allow you to enter into any kind of set-off arrangement which would allow you to pay or receive on settlement only the amount of any profit or loss occasioned by fluctuations in exchange rates. If you want to speculate on exchange rate movements, you should not use our service.
 
2.4       No Cancellation
 
Once you have booked a transaction, you cannot cancel it. As soon as a transaction is booked, we enter into a matching transaction with our own foreign exchange provider which we have to settle whether or not you settle your transaction. If you fail to deliver to us the full amount of the money you are transmitting on the due date, or you fail to deliver any advance payment we have requested, we will close out the transaction. Closing out a transaction involves reversing the transaction we have entered into with our own provider. Sometimes, we will realise a loss on the reversed transaction as a result of exchange rate fluctuations. If there is a loss, we will ask you to pay any loss immediately. In no circumstances will we pay you any profit realised by us if we close out a transaction that you have failed to settle.
 
3.         OVERVIEW
 
3.1       What is Foreign Exchange?
 
While we offer only a money transmission service, the transactions we enter into with you are referred to technically as "deliverable foreign exchange" transactions. Whenever you exchange one currency for another, you are effectively engaging in a foreign exchange transaction. The term "foreign exchange" refers to the simultaneous purchase of one currency and sale of another currency at an agreed exchange rate. 
 
3.2       Exchange Rates
 
The "exchange rate" is the price at which one currency can be bought or sold in exchange for another currency. An exchange rate is the price of one currency expressed in terms of another currency.  For example, if the current exchange rate for the Canadian dollar against the British pound is 0.6194, this means that a Canadian dollar is equal to, or can be exchanged for, approximately 62 pence.

3.3       Quotation of Exchange Rates
 
The foreign currency market is an over-the-counter ("OTC") market, which means that there is no official or benchmark exchange rate for foreign currencies. Different service providers will quote different exchange rates at different times of the day. We cannot guarantee to offer the best rate available on the day, but we endeavour to be very competitive and will try to match any better rates.
 
3.4       Exchange Rate Fluctuation
 
Exchange rates fluctuate constantly and thereby give rise to risk and uncertainty. The chart below shows the fluctuations in the CAD/USD exchange rate between 19 July 2005 and 10 August 2010.
 
Table 1
 

 

 

EXAMPLE A 
 
Please note: The following is a hypothetical scenario. The exchange rates mentioned are based on Table 1 above, but are used for the purposes of illustration only.
 
Scenario 1
 
On 30 May 2008, ABC Pty Ltd, a Canadian company, entered into a Cash on Delivery ("COD") contract with XYZ LLC in America to buy 100 laptops at a unit price of USD$2,000. At that time, the exchange rate was 0.9450, which means that the cost of the contract in Canadian dollars was CAD$211,640. When the computers were delivered on 30 September 2008, the exchange rate was 0.7250 which means that the amount payable was CAD$275,862.00. The Canadian company had to pay CAD$64,222.00 more than they had anticipated. 
 
Scenario 2
 
Equally, if the Canadian company had entered into the transaction on 30 September 2008 when the exchange rate was 0.7250 and the computers had been delivered on 14 January 2009, when the exchange rate was 0.9350, the Canadian company would have realised a significant benefit.


3.5       Margin
 
We make our profit primarily from our Margin. The Margin refers to the difference between the rate we obtain from our own providers on the wholesale foreign exchange market (eg: the Interbank Spot Rate) and the rate we quote you. The Margin will vary from currency to currency and from time to time. While we do not disclose our Margin on every transaction, you are always free to compare the exchange rate we quote you with other providers to ensure that we are offering you a good rate. 
 
3.6       Transaction Fees
 
CanadianForex charges a small fixed transaction fee, but only on transactions under CAD$10,000 (or foreign currency equivalent).  This is a separate fee, the amount of which is unrelated to the exchange rate. You must factor this fee into the cost of the transaction as well. If you are comparing rates, you should bear in mind that an attractive exchange rate may be offset by a high transaction fee (or vice versa).
 
3.7       Transactional Risk
 
When you enter into a transaction with us, moneys you place with us are not held in a separate account or on trust for you. You are therefore assuming a risk in relation to our solvency. While we maintain surplus liquid funds at all times, our liabilities are not guaranteed in any way by any other entity in the OzForex Group. However, as we don't assume any risk in relation to exchange rate fluctuations and have netting arrangements in place with other institutions to protect future cash flows, our business model is generally a low risk one.
 

4          TRANSACTIONS
 
4.1       Exchange Rates
 
As a technical matter, exchange rates may generally be quoted as:
 
(i)         Value Today (or "T");
 
(ii)        Value Tomorrow (or "T+1");
 
(iii)       Spot (or "T+2"); and
 
(iv)       Forward (up to 12 months).
 
We offer only Spot ("T+2") and Forward Transactions, not Value Today or Value Tomorrow transactions. When comparing rates, you should make sure that you compare only T+2 rates, not T or T+1 rates, as they could be appreciably different.
 
4.2       Orders
 
We also offer an arrangement whereby you can enter into a Spot Contract or a Forward Contract only when a target exchange rate is reached. For a more detailed explanation of how our limit orders work, please go to paragraph 7.
 
5          SPOT CONTRACTS
 
5.1       What is a Spot Contract?
 
A Spot Contract is an agreement to exchange one currency for another at an agreed exchange rate within 2 days of the agreement being entered into. An individual or a company will enter into a Spot Contract when they want to transfer money overseas immediately; for example, when they are making a purchase overseas in a foreign currency and need to transfer funds to pay for the purchase.
 

 

Example: In Scenario 1 of Example A above, the Canadian company could have entered into a Spot Contract on about 28 September 2008, 2 days before payment for the laptops was due, at which time the Spot Rate was 0.7210, so the company would have paid about CAD$275,000.
 
In Scenario 2 of Example A above, the Canadian company could have waited and entered into a Spot Contract on 14 January 2009 when the exchange rate was 0.9350 and would have paid about CAD$213,900.

 

 

5.2       Variables
 
In a Spot Contract, there are a number of variables that need to be agreed upon, including:
 
(a)        The denomination and amount of the currency being bought.
 
(b)        The denomination and amount of the currency being sold.
 
(c)        The exchange rate.

5.3       Settlement
 
A Spot Contract must be settled within 2 days of the transaction being booked. This means that you must pay us the money you are exchanging within 2 days. Actual receipt of the funds transferred by us into your nominated Beneficiary Account will take longer than 2 days and the actual timing of the payment to the Beneficiary Account will depend on the destination of the funds and the intermediary banks involved.
 
5.4       Fees
 
The following Fees/costs may apply to a Spot Contract.
 
(a)        Margin
 
The Margin will vary from time to time and from currency to currency.  
 
(b)        Exchange Rate
 
The Spot Rate quoted by us will be calculated by taking into account the Interbank Spot Rate and the Margin.  
 
(c)        Transaction Fees
 
We charge a transaction fee which is presently CAD$15.00 (or foreign currency equivalent) for transfers up to CAD$10,000. We do not charge transaction fees for transactions over CAD$10,000 (or foreign currency equivalent).
 
(d)        Third Party Transaction Fees
 
In some cases, the intermediary banks we use to process payments may deduct transaction fees that we have not anticipated and, in some jurisdictions, the receiving bank could charge a receiving bank fee, however we will try to send money through a low value network to avoid such fee deductions. We will try and notify you of these additional fees but, as they are outside our control, we cannot always do so in advance. You may find, in some cases, that the total amount you expect to receive in your Beneficiary Account is slightly less because such fees have been deducted. You should bear this in mind if you are paying the precise amount of an invoice, for example. If you have any questions regarding likelihood of third party transaction fees being levied by intermediary banks for your transaction, you should ask one of our dealers when you book a deal and we will be more than happy to indicate from our experience the type of third party transaction fees that may be charged in the jurisdiction where your nominated Beneficiary Account is held and with regard to the currency being exchanged.
 
5.5       Significant Benefits
 
The significant benefits of entering into a Spot Contract with us are:
 
(i)         speed and ease of transacting.
 
(ii)        certainty in relation to the exchange rate we offer you; and
 
(iii)       access to real time pricing.
 

5.6       Significant Risks
 
The significant specific risks involved in entering into a Spot Contract are:
 
(i)         as exchange rates fluctuate quite rapidly, you may find that the rate improves very soon after you lock in a rate or that another provider is offering a slightly better rate at   any particular point in time;
 
(ii)        delays, which are rare but do happen; they can be caused by technical or administrative problems experienced by CanadianForex or by intermediaries for reasons entirely outside CanadianForex's control.
 
6          FORWARD CONTRACTS
 
6.1       What is a Forward Contract?
 
A Forward Contract is a transaction that allows you to transfer money at some time (up to 12 months) in the future at an exchange rate that you agree now, so that you know what the exchange rate will be at the time the exchange of currencies becomes necessary. This allows you to avoid the risks and uncertainties associated with adverse exchange rate movements.
 
6.2       Purpose of a Forward Contract
 
The purpose of a Forward Contract is primarily to achieve certainty and to avoid possible losses attributable to adverse exchange rate movements.  A forward contract enables future exchange risk to be avoided, although you may still face a loss if you do not settle the forward contract on or before the Maturity Date.  A Forward Contract may be useful in the following circumstances:
 
(a)        importing and exporting goods where the invoice is in a foreign currency;
 
(b)        borrowing in foreign currencies;
 
(c)        investing in foreign currencies;
 
(d)        buying or selling property overseas;
 
(e)        receiving pension payments from an overseas jurisdiction; or
 
(f)         repatriating salary or interest payments received overseas.
 
Forward Contracts are generally used by importers, exporters and investors who seek to lock in exchange rates for a future date in order to achieve contractual or cash flow certainty by avoiding adverse exchange rate movements. However, they can also be used by individuals migrating or buying property overseas who want to lock in a good exchange and not take the risk the exchange rate will be worse when they actually need the money.

 

 

In Scenario 1 of Example A above, the Canadian company could have entered into a Forward Contract on 30 May 2008 and locked in the forward rate of around 0.9450 by entering into a Forward Contract. On 30 September 2008, the Canadian company could have settled the Forward Contract with CanadianForex by paying only about CAD$215,000, instead of approximately CAD$275,000 if they had waited and entered into a Spot Contract.

 

 

 
Table 2
 

 
 

 

Please note: The following is a hypothetical scenario. The exchange rates mentioned are based on Table 2 above, but are used for the purposes of illustration only.
 
On 13 October 2008, John Citizen entered into an agreement to sell his investment property in the UK in which he had GBP100,000 equity with the intention of paying the proceeds into the mortgage over his Australian house. He decided to lock in the rate of 2.5850 at that time rather than waiting to see what the exchange rate would be on 30 June 2009. He therefore agreed to pay GBP100,000 on 30 June 2009 in exchange for AUD$258,500. If he had waited and entered into a Spot Contract on 30 June 2009, he would have received AUD$205,080 for his UK pounds and would therefore have been approximately AUD$50,000 worse off.

 

 


6.3       Variables
 
The variables in a Forward Contract are:
 
(a)        The denomination and amount of the currency being bought.
 
(b)        The denomination and amount of the currency being sold.
 
(c)        The exchange rate.
 
(d)        The Maturity Date.
 
6.4       Forward Rate
 
In determining the rate of exchange for a Forward Contract, there are two components:
 
(i)         the current Spot Rate; and
 
(ii)        the forward rate adjustment ("Forward Points").
 
The Forward Rate quoted by CanadianForex will not be the same as the Spot Rate, because it will take into account the interest costs in holding the money until the Maturity Date. It may be better or worse than the prevailing Spot Rate on the day depending on the difference in interest rates between the country from which the funds are sent and the country to which the funds are being sent. 
 
The calculation of Forward Points is a complicated one. It will be influenced not just by interest rates in the two relevant countries, but also by the duration of the Forward Contract and less tangible factors such as the expected direction of interest rates in the two relevant countries prior to the Maturity Date. You may find that the Forward Points change quite significantly over a short period of time as a result of developments impacting on expectations of future interest rate changes. Table 2 illustrates the calculation of a Forward Rate for a 3 month forward contract.
 
Table 3
 

 

Currency CANADIANFOREX buys/ Client sells): CAD
Amount: 215,109.80
Currency CANADIANFOREX sells/ (Client buys): USD
Amount: 200,000.00
Maturity date of forward contract: Date + 3 calendar months
Spot Rate 0.9336
Exchange Rate Agreed: 0.9332 (Spot Rate -0.0035 forward points) 

 
Warning: the information in this chart is historical and is not intended to predict in any way future possible CAD/USD exchange rate movements.  It is used only to demonstrate how Forward Points are calculated. The exchange rate agreed is based on the wholesale Spot Rate that CanadianForex is able to get from one of our liquidity providers.  Based on this wholesale Spot Rate, we are then able to quote you a Spot Rate and you may then accept the rate quoted and enter the deal.
 
6.5       Variation to the Maturity Date
 
We may, entirely in our discretion, agree to allow you to vary the Maturity Date you have booked by paying to us some or all of the amount you are transferring at some time before the Maturity Date ("Pre-Delivery") or by extending the Maturity Date ("Rollover"). If we do agree to such a variation, the Forward Points will change.
 
6.6       Advance Payment
 
All Forward Contracts must be settled by delivery of the full amount being transferred on the Maturity Date (also referred to as the Settlement Date).  This means that we must be able to see the cleared funds in our bank account on the Settlement Date.  There is a risk that you might not be able to settle the transaction on the date that you have agreed to. We therefore bear a Settlement Risk. To cover this Settlement Risk, in most cases, we will request that you make an Advance Payment in relation to a Forward Contract.
 
The amount of any initial Advance Payment requested will be a fixed percentage of the value of the transaction and will normally be between 5% and 10% of the value of the transaction, but could be more depending on the duration of the Forward Contract.  While the amount of any Advance Payment is at CanadianForex’s complete discretion, as a general guide, short term Advance Payments (with a Maturity Date occurring within 0-3 months) will attract a 5% initial Advance Payment and long dated Forward Contracts (with a Maturity Date occurring within 3-12 months) will incur a 10% Advance Payment. 
 
Whether or not you have already paid an initial Advance Payment, if the exchange rate continues to move unfavourably for you, we may ask you for one or more additional Advance Payments to cover the default risk.   
 
In the event that we have requested payment of a Advance Payment at any stage of the transaction, you must pay it promptly. We expect to receive the Advance Payment within 48 hours of the request, failing which we reserve the right to Close Out the transaction without notice and ask you to pay the full amount of any loss occasioned by us immediately. 
 
We do not pay interest on Advance Payments.
 
IMPORTANT: You should not enter into a Forward Contract if you are unable or unwilling to pay an initial Advance Payment of between  5% and 10% of the value of the transaction with the possibility of one or more further Advance Payments being requested at any time prior to the Maturity Date. If we ask you to pay an Advance Payment at any time and fail to do so, we may Close Out your Forward Contract without prior notice.
 
6.7       Closing Out Transactions
 
The liability for an adverse exchange rate movement is crystallised at the commencement of the Forward Contract and not on settlement. If you want to calculate your liability to pay a Advance Payment at any point in time prior to the Maturity Date or your liability to pay a loss in the event that the contract is Closed Out, you need to consider the exchange rate at the time of closing out, because Closing Out involves entering into the same transaction in reverse and selling bought currency back into the market. In the event that a Forward Contract is Closed Out, we will calculate, as at the closing out date, the value of the transaction using prevailing market rates chosen by us in good faith. 
 
IMPORTANT: If there is a loss on a transaction that is Closed Out, you will be liable to compensate CanadianForex immediately upon demand for the full amount of that loss which could exceed the amount of any Advance Payment already held. In no circumstances shall CanadianForex be liable to pay to you any profit arising from the closing out of a transaction.
 
Set out below is an example of what it might cost a client if we are required to Close Out a forward contract and which illustrates one of the risks of using this type of fx product.
 

Example: In Example A above, assuming that the Canadian company entered into a Forward Contract on 30 May 2008, they may find at the end of August that they no longer want to buy the laptops for some reason or that the American company is unable to fill the order. However, they are still bound to settle the Forward Contract with CanadianForex even though they no longer have any need to send any money to the US. They will ask CanadianForex to Close Out the transaction or, if they simply fail to deliver the funds on the Settlement Date, we will Close Out the transaction. In either event, on the day the Forward Contract is Closed Out, we will sell back the USD that we bought for the Canadian company when the Forward Contract was entered into and the exchange rate that applies on that day will apply. If the Forward Contract had been closed out on 30 September 2008, the exchange rate was 0.6250 at that time. The loss would therefore have been CAD$108,000, which the Canadian company would have to pay to us within 7 days.  

 

 

 
6.8       Significant Benefits
 
The significant benefits of entering into a Forward Contract are:
 
(i)         cash flow certainty; and
 
(ii)        protection from adverse exchange rate movements.
 
6.9       Significant Risks
 
The significant specific risks involved in entering into a Forward Contract are:
 
(i)         The opportunity to make financial gains as the result of favourable exchange rate movements is precluded; if you enter into a Forward Contract, you must always settle
            it on the agreed terms whatever the exchange rate is on the Maturity Date.
 
(ii)        If the reason for entering into the Forward Contract ceases to exist (eg: the relevant  supply contract is cancelled) prior to the Maturity Date, the Forward Contract may need to be Closed Out early and that may result in a loss if the exchange rate has moved unfavourably, as you are not able to cancel the transaction or transfer your obligations to anybody else.
 
(iii)       An Advance Payment may be requested of at least 5% to 10% of the value of the transaction either at the beginning of the transaction or at any time prior to the Maturity Date, so you must ensure that you have the funds available to meet any such request. If for any reason you are unable to pay the Advance Payment, we may Close Out your transaction without notice.
 
(iv)       Interest will be foregone on the amount of any Advance Payment/s held by us as we do not pay any interest on Advance Payments.
 

7          ORDERS
 
What is an Order?
 
You may enter into an agreement with CanadianForex whereby your Spot Contract or Forward Contract becomes binding only when a certain exchange rate ("Target Rate") is reached. You are able to amend or cancel your Instructions by telephone at any time before the Target Rate is reached. However, once the Target Rate is reached and the Order is filled by us, you are bound to settle the transaction in accordance with its terms (please see Parts 5 and 6 for a discussion of Spot Contracts and Forward Contracts).
 
8          GENERAL BENEFITS OF USING CANADIANFOREX'S SERVICE
 
General Benefits
 
Our trading platform offers:
 
(i)         real-time pricing (just login and request a live, and dealable, rate);
 
(ii)        immediate access to a trading platform 24-hours a day Monday to Friday;
 
(iii)       reduced transaction costs;
 
(iv)       competitive exchange rates;
 
(v)        accurate transaction records with your personal deal history accessible at anytime by using your personal login on our website;
 
(vi)       access to market research; and
 
(vii)      we offer visibility to wholesale pricing and a completely transparent service where you can compare our rates against wholesale rates and against your bank’s rates.
 
9          APPLICABLE LAWS
           
Please see the Privacy Policy on our website at www.canadianforex.ca.
 
9.2       Money Laundering Regulations
 
By entering into the Client Agreement, you undertake that you will not knowingly do anything to put CanadianForex in breach of the Proceeds of Crime (Money Laundering) & Terrorist Financing Act, rules and other subordinate instruments (AML/TF Laws). You undertake to notify CanadianForex if you are aware of anything that would put CanadianForex in breach of the AML/TF Laws. CanadianForex is required to comply with these laws, including the need to establish your identity (and, if relevant, the identity of other persons associated with your account). Instructions for completion of the identification process are included in the Client Agreement that you will need to complete. Additionally, from time to time, we may require further information to assist with this process.
 
9.3       Refusal to Transact
 
As a result of our obligations under international money laundering regulations, we reserve the right to refuse at any time and entirely at our discretion, to accept you as a client and to refuse to provide you with our service without explaining our reasons for doing so and without incurring any liability to you as a result of such a decision. This would usually happen before we transact with you if you failed to satisfy our internal identification requirements, but there may also be circumstances in which we are obliged to refuse to continue to provide our service to you after we have accepted you as a client and even though we have transacted with you in the past. This could happen if, for example, it came to our attention that information you provided to us when you registered subsequently appeared to be misleading or incorrect. In some (rare) circumstances, we may be obliged to freeze your account completely and retain any funds we are holding for you pending further investigation. 
 
12        DISPUTE RESOLUTION PROCESS
 
12.1     Internal Complaints Procedure
 
We have an internal dispute resolution process in place to resolve any complaints you may have quickly and fairly.  Please see the Complaints Handling Policy on our website at www.canadianforex.ca.
 
12.2     Arbitration
 
If the dispute cannot be resolved under our internal disputes policy, you can refer your case to an independent arbitrator. Under the Client Agreement you agree to be bound by a decision of an arbitrator, such as one appointed by the ADR Chambers in Toronto or a similar arbitration body. You agree to accept the determination of the arbitrator.
 
12.3     Recovery of Sums Payable by You
 
If we Close Out a Transaction and you become liable to pay us an amount by way of loss on the Transaction, we will pursue any such unpaid amount immediately through legal action. Any such recovery action shall not be subject to our internal complaints procedure or to arbitration.
 
13        DEFINITIONS  
 
Advance Payment means a part payment of the amount being exchanged in such amount as CanadianForex shall deem necessary to cover its Settlement Risk which may arise from adverse movements in the foreign exchange rate on Forward Contracts. 
 
AUD means Australian Dollar.
 
Beneficiary Account means the bank account nominated by you to which we send your funds.  It could be an account in your name or it could be an account of a third party (ie: a party whom you are paying for goods or services).
 
CAD means Canadian Dollar.
 
Client Agreement means the umbrella agreement that we will ask you to enter into before we begin transacting with you.
 
Close Out means cancelling the transaction and selling back the currency we have bought for you when you entered into the transaction.
 
Currency Pair means the two currencies that are the subject of the transaction.
 
Delivery means payment to us of the full amount of the currency you are exchanging.
 
Fees means all fees, costs and charges associated with your transaction.
 
Forward Contract means an agreement where one currency is sold or bought against another currency at an agreed exchange rate for settlement on a specified date in the future.
 
Forward Points means the amount by which a Forward Rate varies from the Spot Rate as a result of the differential in interest rates between the countries of the Currency Pair.
 
Forward Rate means the Spot Rate adjusted to a future date having regard primarily to the interest rates prevailing in the two countries in the Currency Pair.
 
Instructions means a request made by you to enter into a transaction.
 
Interbank Spot Rate means the wholesale Spot Rate that we receive from the foreign exchange interbank market. This is usually a preferential dealing rate given to organisations conducting large and frequent transactions, being a rate to which retail customers do not  generally have access.
 
Margin means the difference between the exchange rate we pay our provider, which we access through the wholesale foreign exchange market, and the rate that we quote to you.
 
Maturity Date means the agreed Settlement Date which may be brought forward or extended by us at our discretion.
 
OzForex means OzForex Pty Ltd (ACN: 092 375 703), an Australian company.
 
OzForex Group means OzForex Pty Ltd and its related bodies corporate.
 
Privacy Policy means the privacy policy on our website at www.canadianforex.ca.
 
Settlement Date means the date on which the funds that are being exchanged must be received by us.
 
Settlement Risk means the risk we assume that you will fail to settle a transaction in accordance with its terms and that a loss will be realised by us as a consequence of exchange rate fluctuations.
 
Spot refers to a foreign exchange contract that must be settled within 2 days (48 hours) and is sometimes referred to as T+2.
 
Spot Rate means the exchange rate for settlement within 2 business days from the date the transaction was booked.
 
Transaction Fee means a fixed fee charged on smaller transactions to cover administrative costs.
 
USD means United States Dollar.
 
Value Today refers to a foreign exchange contract that must be settled on the day it is entered into.
 
Value Tomorrow refers to a foreign exchange contract that must be settled within 1 day (24 hours) and is sometimes referred to as T+1.
 
We or Us means CanadianForex Limited (CN: 674939-9).

 

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