TL;DR: On Bound, you can amend a booked FX forward (see glossary) yourself if the payment it covers changes. You can change the settlement date (see glossary), increase or decrease the amount, draw down part of the forward early, or split it across multiple settlement dates. The fee for any change is shown before you confirm. Closing a forward early is different from amending it and has its own costs, which we cover below. This guide explains each option, what it costs and how amendments work in practice.
Your supplier pushes a payment date back three weeks, but the FX forward you booked to cover it still settles on the original date. Your hedge and your payment no longer match.
An FX forward lets you agree an exchange rate today for a payment you expect to make or receive in the future, giving you certainty over the rate on the hedged amount. But the underlying payment can still change. Payment dates move, order values change and deliveries can arrive in parts.
So what happens to the forward when they do? This guide explains how to amend, extend or roll an FX forward, including changing the settlement date or notional amount, making a partial drawdown, splitting a forward across multiple payments and closing a forward early. It also explains the FX forward fees involved and how an amendment fee is calculated. With Bound, you can make amendments yourself online, with the fee shown before you confirm.
Adjusting your hedge for shifting timelines
When to amend versus close an FX forward early
There are two different ways to change a booked FX forward, depending on what has changed. An amendment changes the terms of the existing forward, for example if the payment date or amount changes. With Bound, you can make the amendment yourself online and see the fee before you confirm.
An early close-out ends the forward before its settlement date, for example if the underlying payment is no longer going to happen. Close-outs work differently from amendments and are subject to Bound's discretion. The amount you receive or pay depends on the value of the forward at the time and your agreement with Bound. We explain the mechanics and costs in the close-out section below.
Consideration | Amendment | Early close-out |
|---|---|---|
Who initiates | You, self-serve in the platform | You request, Bound's discretion applies |
Fee structure | Published, shown before confirmation | Mark-to-market settlement, which may result in an amount payable to or by you |
Typical use case | Payment date or amount changes | Deal falls through or payment will not happen |
What you can change
Amendment types cover the common situations where the payment date or amount changes:
Move the settlement date to match a payment that has moved.
Increase or decrease the notional amount (the amount of currency covered by the forward).
Draw down part of the forward early if you need some of the currency before the full settlement date.
Split one forward across multiple settlement dates if the underlying amount will be paid or received in several parts.
When to modify your forward contract
Maybe a supplier pushes back an invoice due date after you've already booked the hedge. Maybe order volumes shift and the hedged amount no longer lines up with what you're actually paying. Or a delivery lands in two shipments, so one hedge needs to cover two separate payment dates. In every case the underlying exposure is still there, which is exactly what makes these amendments rather than close-outs. Your provider may handle these changes by phone or email, and the process varies by provider.
Self-serve steps to adjust your forward contract
Locate your existing contract: Find the open forward you want to change in your Bound account. You can see the trade details and current settlement date there. For more detail on how FX forwards work, see Bound's FX forwards guide.
Enter the new date or amount: Select the forward and enter the new settlement date or notional amount.
View the amendment fee upfront: Before you confirm the change, Bound shows you the amendment fee. The published fee schedule is:
Amendment type | Fee |
|---|---|
Change settlement date | 0.05% of notional |
Decrease amount | 0.05% |
Increase amount | New booking at 0.25% to 0.75%, depending on your annual FX flow tier |
The 0.25% and 0.75% figures are the outer tiers, and the fee tiers down as annual flow rises. Your exact pricing is on the Bound pricing page.
Confirm your contract changes: Confirm the change and it goes through. Where you've connected your accounting software, Bound can write trade records back automatically, so month-end reconciliation does not require re-keying from a confirmation.
How to extend, reschedule or roll a forward contract
Extend, reschedule and roll all describe the same thing on Bound: moving a forward's settlement date. There's no separate process for each. You amend the date using the steps above, and the fee is shown before you confirm.
Updating dates to match payments
A common scenario is a supplier confirming a new invoice due date after you've already booked the forward. Changing the settlement date means the forward continues to match when you expect to make the payment.
Exchange rates can move in either direction while you hold the forward. Extending the settlement date gives you certainty over the rate on the hedged amount for the new date, it isn't about trying to get a better rate. The value of a forward is in that certainty, not in predicting where the exchange rate will move.
Amendment fee for date changes
Bound shows the fee for changing a settlement date before you confirm. Your provider may build amendment costs into the rate or quote them only after you ask, and this varies by provider. With Bound, the fee is published and shown upfront, so you know what the change will cost before you make it. The amendment is also recorded as part of the trade record.
What "rolling a forward" usually means
Rolling a forward, in the traditional sense, usually means closing the existing contract and booking a new one for a later date. That's what most people mean when they search for how to roll over a forward contract.
Bound handles a date change as an amendment instead: the settlement date moves, but the position never closes.
Consideration | Amending the settlement date on Bound | Closing and rebooking a forward |
|---|---|---|
Cost | Published fee, shown before confirmation | Mark-to-market settlement on close, plus spread on new booking |
Mark-to-market settlement | Rolled into your new rate, not settled separately | Yes, positive or negative to you |
For most changes to a payment date, amending the existing forward means paying a known fee that is shown before you confirm. Closing and rebooking works differently: the existing forward is settled at its mark-to-market value and a new forward is booked at the rate available at the time.
Bound's order handling and best execution policy explains how Bound handles and executes trades.
Quickly resize or split an existing FX forward
Reducing exposure on booked trades
If the amount you expect to pay or receive falls, you can reduce the notional amount of your booked forward to match. Bound charges a transparent fee for decreasing the amount, which is shown before you confirm the change.
Managing partial hedge drawdowns
A drawdown lets you settle part of a forward before the full settlement date while leaving the rest in place. This can be useful when a supplier delivers and invoices in stages, so you need different parts of the forward to settle at different times.
Example: Calculating an amendment fee
Scenario: Extending settlement by 30 days
Take a £500,000 forward booked to cover a USD supplier payment. The supplier moves the invoice due date back 30 days and the only change needed is the settlement date. Moving the settlement date on that £500,000 forward costs 0.05%, which is £250, shown on screen before you confirm. The settlement date then moves to match the revised invoice date, and the rate you booked when you opened the forward stays in place.
How the amendment fee is calculated
The fee is calculated on the notional amount of the contract being amended, not on the gain or loss at the time of the change. For the scenario above:
Notional: £500,000
Fee rate: 0.05%
Fee: £250
The same 0.05% fee applies when you decrease the notional amount. If you increase it, the additional amount is booked at the prevailing forward rate and charged the spread for your pricing tier, as shown in the amendment fee table earlier in this article.
When to close out instead of amend
Identifying early close-out triggers
An early close-out may be appropriate when you no longer need the forward at all, rather than simply needing to change its date or amount. For example, the deal may have fallen through or the underlying payment may no longer be happening.
Early close-out is at Bound's discretion, as set out in Bound's terms and conditions.
How mark-to-market affects an early close-out
If you close a forward early, its current value is calculated using prevailing market rates. This is known as its mark-to-market value (see glossary). Depending on how exchange rates have moved since you booked the forward, closing it early may result in an amount payable to you or by you. This depends on your agreement with Bound.
Margin during the life of the forward
Where a position moves out of the money (see glossary), Bound may request additional margin during the life of the forward. The mechanics of how your money is held are set out on Bound's safeguarding page. This is standard risk management for a regulated firm, and it is separate from any amendment you make yourself.
If you want to see the amendment workflow before you need it, book a demo and walk through a live date change, amount adjustment, and split, with the fee disclosure shown at each step.
FAQs
Can I extend a forward contract settlement date?
Yes. You can amend the settlement date yourself on Bound, and the fee is shown before you confirm.
How much does it cost to roll a forward contract?
On Bound, rolling a forward by changing its settlement date costs 0.05% of the notional amount being amended. The exact fee is shown before you confirm the change. Closing a forward and booking a new one is different. An early close-out may result in a mark-to-market amount payable to or by you, and the new forward is booked at the prevailing forward rate with the applicable spread (this depends on your agreement with Bound).
What happens if I need to cancel a forward completely?
If you no longer need the forward, you can request an early close-out. This is different from amending the date or amount of an existing forward and is subject to Bound's discretion. The close-out section above explains the conditions, costs and mark-to-market settlement.
What types of amendments can I make to a forward?
Bound supports date changes, amount adjustments, and partial drawdowns. The fee is shown before each change is confirmed.
Do I need to call anyone to amend a forward in Bound?
No. Amendments are self-serve. You can select the forward, enter the new date or amount, see the fee and confirm the change yourself online, without a phone call or email.
Does amending a forward update my accounting records?
Where accounting software is connected, Bound can write trade records back automatically.
Key terms glossary
FX forward: A contract between you and a provider to exchange one currency for another at an agreed rate on a specified future date. Booking an FX forward gives you certainty over the exchange rate on the hedged amount, so that a future supplier payment, customer receipt, or financing commitment is not exposed to currency movements between now and the settlement date. The rate agreed is the forward rate, which reflects the spot rate adjusted for the interest-rate differential between the two currencies over the term of the contract.
Settlement date: The date on which the currencies are exchanged under an FX forward, the day the agreed notional amount changes hands at the agreed rate.
Notional amount: The face value of the trade, the total amount of currency being bought or sold under the forward. Amendment fees for date changes are calculated as a percentage of the notional amount, not as a percentage of any gain or loss on the position.
Drawdown: Using part of a forward before its full settlement date. Technically, Bound books a currency swap for the drawdown amount at the earlier date, while the remaining notional stays in place under the original forward. This is useful where a supplier invoices in stages and you want cover to settle against each invoice rather than all at once, without closing or rebooking the original position.
Currency swap: A transaction that moves the settlement date of part of a forward to an earlier date. When you draw down a portion of a forward, Bound books a currency swap for that amount, pairing early settlement of the drawn-down portion with an offsetting transaction that keeps the remaining notional under the original forward at its original rate. The practical effect is that you receive the currency for the portion you need now, while the rest of the hedge continues to the original settlement date.
Mark-to-market: The value of an open forward if it were closed at current market prices. Mark-to-market can be positive or negative to you depending on how rates have moved since you booked. A positive figure means the forward is currently in your favour at prevailing rates, a negative figure means the reverse. Closing it early may result in an amount payable to you or by you. This depends on your agreement with Bound. On Bound, mark-to-market values are made available through downloadable statements rather than shown live in the platform.
Out of the money: A forward is out of the money when, at current market prices, closing it today would result in a loss to you. For example, if you booked a forward to sell USD and buy sterling at 1.25 and the rate has since moved to 1.20, closing the position early would cost you the difference on the notional amount. A position being out of the money does not mean you have lost that amount. It is an unrealised position until the forward is closed or reaches its settlement date, and it is also the basis on which Bound may request additional margin during the life of the contract.
Amendment: A self-serve change to a booked forward's settlement date, notional amount, drawdown, or split settlement structure. On Bound you make the change in the platform and see the fee before you confirm. An amendment does not close the forward. The original contract continues with its terms updated. Changes can carry a cost.
Early close-out: Cancelling a forward entirely before its settlement date, at Bound's discretion. Unlike an amendment, early close-out settles a mark-to-market amount, which can be positive or negative to you depending on how rates have moved since you booked and your agreement with Bound. This may be an appropriate route when the underlying exposure has disappeared entirely, for example, when a deal falls through, rather than when its timing or size has changed.
No opinion given in the material constitutes a recommendation by Bound Rates Limited that any particular transaction or investment strategy is suitable for any specific company or person. Results may and will vary. The information in this publication does not constitute legal, tax or other professional advice from Bound Rates Limited or its affiliates.
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