Credit
Any trade with a forward obligation contains an element of counterparty credit risk. The trade, which is collateral by nature, means that the risk is lower than that associated with an unsecured trade. Risk may be reduced further by signing a repo agreement giving the right to mark trades to market. Whatever steps are taken, there will remain a residual amount of counterparty credit risk. So the golden rule is Know Your Counterparty (KYC). Our credit department will help in setting up a credit line that is suitable for you.