European Kick into Forward

You already have some experience of currency hedging products. Do you now wish to use a hedging option that also allows you to benefit from advantageous exchange rate movements? Then the “European Kick into Forward” is the ideal solution.

Within the range of UBS foreign currency products the “European Kick into Forward” is a conservative product that offers you complete hedging with additional potential to share in gains.

To explain the product to you, let’s take as an example you buying euros against Swiss francs. We will agree on the volume and the term, and then – based on the current market situation – we will set the exercise price or “strike” and the barrier price, also called the “instrike”.

You are seeking to hedge your currency risk – in your case an increase in the euro against the Swiss franc. If the euro falls, though, you would like to benefit from this advantageous movement.

With the “European Kick into Forward”, there are therefore three possible scenarios for you: