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Convert foreign currencies

WorldFirst supports two types of foreign exchanges:

  • Spot FX: A spot exchange rate is the current foreign exchange rate at which one currency trades for another at a specific point in time. Simply put, it is the exchange rate "on the spot".
  • Forward FX: A forward exchange rate represents the price at which a currency will be bought or sold at a future date.
  1. 1

    Scenario 1. Spot FX trading

    4 steps Collapse all Expand all

    Click on the Expand all button to view the procedures to trade foreign exchanges with spot exchange rates.

    The following figure illustrates the workflow to create a spot FX trade request with WorldFirst:

    Foreign exchange

    Figure 1. Trade spot FX with WorldFirst APIs

    1. 1. Ensure funding is sufficient

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      Before initiating an FX trade with spot exchange rates, the Customer needs to make deposits to an assigned Virtual Account.

      After receiving the deposits, WorldFirst notifies the Partner with the notifyVostro interface. The Partner needs to determine which specific Customer and which specific trade to process.

    2. 2. Create a FX quote

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      Call createQuote API to create an FX quote. WorldFirst responds with the quote.

    3. 3. Create a spot FX settlement

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      You can create a spot FX settlement after retrieving a feasible quote, make sure the Customer has sufficient funding deposit.

      • You can also make active inquiries about the spot FX settlement result.

    4. 4. Further actions

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      After the trade is completed, you can perform further actions such as making a transfer request.

  2. 2

    Scenario 2. Forward FX trading

    9 steps Collapse all Expand all

    Click on the Expand all button to view the procedures to trade foreign exchanges with forward exchange rates.

    To trade forward FX, take the following steps:

    • (Step 1. - Step 4.) Create a forward deal, which is an agreement to settle the forward FX at a future date. The following figure illustrates the workflow to create a forward deal with WorldFirst:

    Convert foreign currencies

    Figure 2. Create a forward deal with WorldFirst APIs

    • (Step 5. - Step 8.) Execute a forward settlement to settle the deal. You need to ensure the deal is sufficiently funded before the settlement. The following figure illustrates the workflow to create a forward settlement with WorldFirst:

    Convert foreign currencies

    Figure 3. Create a forward settlement with WorldFirst APIs

    1. 1. Query an available date for the forward deal

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      The Customer submits an FX request with forward rates. To process the request, you need to book an available date for the forward deal. Call the inquiryAvailableCalendar API for an available date on the calendar. Return the available date to the Customer for confirmation.

    2. 2. Create a quote for the forward deal

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      Call the createQuote API to create a foreign exchange quote. WorldFirst responds with the quote.

    3. 3. Create a forward deal

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      After the quote is confirmed by the Customer, you can create a forward deal.

      • The forward deal process is asynchronous. WorldFirst responds that the forward deal is being processed. For the forward deal result, you can actively make an inquiry.

    4. 4. Receive forward deal result notification

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      Once WorldFirst finishes processing the forward deal, you will receive a notification about the forward deal result. You need to acknowledge the reception of the notification and process the result accordingly.

    5. 5. (Optional) Unwind a forward deal

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      In case you need to cancel the forward deal, call the unwindDeal API. WorldFirst cancels the forward deal and returns the cancellation result to the Partner.

    6. 6. Ensure funding is sufficient

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      Once the forward deal is due to be concluded, you need to settle the forward deal by creating a forward settlement.

      Before making a forward settlement, the Customer needs to make deposits to an assigned Virtual Account.

      After receiving the deposits, WorldFirst notifies the Partner with the notifyVostro interface. The Partner needs to determine which specific Customer and which specific forward settlement to process.

    7. 7. Create a forward settlement

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      Once you have verified that the Customer has made sufficient funding deposits, a forward settlement can be initiated.

      • The settlement process is asynchronous. WorldFirst responds that the settlement is being processed. For the settlement result, you can actively query the settlement result.

    8. 8. Receive settlement result notification

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      WorldFirst sends out the settlement result notification after the settlement is concluded.

      More information:

      • After receiving the notification, you must take the corresponding actions to process the notification. You need to acknowledge the reception of the notification and process the result accordingly.

    9. 9. Further actions

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      After the trade is completed, you can perform further actions such as making a transfer request.