As exchange rates fluctuate there could be an increased risk on the forward position held by the company with their customers
With the constant fluctuation of exchange rates the outstanding forward contracts can generate an increase on the FX brokerâ€™s risk. e2eFX monitors risk by performing automatic mark-to-market calculations for every customer that has a forward position. If required, a margin call is calculated to reduce the customer exposure to more manageable level.
e2eFX performs this calculation as part of the End of day process, and sends a summary email to an authorized user. This user can decide whether to actually perform a margin call. If selected, e2eFX sends an email to the customer and the assigned dealer. In addition, the back office is notified to expect payment from the selected customer. This facilitates the back office to perform the collection of the margin call.
e2eFX takes the effort out of monitoring your forward positions and makes margin calls automatically!
Quick look - Mark to Market does it calculations during its end of day cycle on every customer that has a forward position and sends a summary email to an administrator of your choice. If margin calls are required then the back-office notified of the required payment and can facilitate the collection.