Foreign exchange covers all the business processes arising from both classical currency trading and trading with OTC currency options. The functions offered support you throughout the whole trading process, starting from concluding the transaction in the front office, through processing in the back office to transferring data to Financial Accounting. A range of evaluation options is also available for reporting purposes.

The integration of the Transaction Manager in Cash Management means that you can immediately analyze and take account of the effects of currency trading on the liquidity position of your company, as well as the resulting currency risks. You can access current market data through the realtime datafeed interface in the process.

The Foreign Exchange area provides the functions that have been described for accruing/deferring expenses and revenues to the appropriate accounting period, performing key date valuations and foreign currency valuations, as well as disclosing profits and losses.

Forex trading includes the following product types.

• Spot exchange and forward exchange transactions
• Foreign exchange swaps
• OTC currency options

Currency options are handled in the derivatives area.

The following diagram illustrates the transaction and position management process using a foreign exchange transaction as an example:

You go to the Foreign Exchange module by choosing: