IDB Bank
Foreign Exchange


Foreign Exchange and Interest Rate Hedging


If you have payables or receivables in foreign currency, need to transfer funds internationally, or simply want to invest in Foreign Exchange or hedge your Foreign Exchange exposure while staying competitive in today’s global marketplace, IDB Bank offers prompt, personal and professional services to assist you.

Timely Trade Execution

Our knowledgeable multi-lingual traders will assist you in every aspect of your foreign exchange needs. Our service is focused on detailed research, advice and execution. Your foreign exchange needs are met in a timely professional fashion.

Full Access to Market Information

We provide technical and fundamental analysis, access to current market news, price discovery and foreign exchange strategies, which are tailored to suit your needs.

Competitive Pricing

Our competitive pricing benefits both commercial and individual clients as well as full-time investors.

Our Foreign Exchange Services

Spot Contracts

The basic conversion of one currency to the other.

Deliverable Forward Contracts

Conversion of one currency to the other on a future date. Also possible to settle on any day within a pre-agreed time period (Window Forward).

Non-Deliverable Forward Contracts (NDFs)

Similar to deliverable forward, the NDF provides exposure protection in emerging market countries that have currency restrictions.

Foreign Exchange OTC Options

Currency options provide protection and flexibility and can be tailor-made according to specific needs.

Foreign Exchange Limit Orders

Limit orders allow you to trade Foreign Exchange at your desired levels without the need to track the market constantly.


If you have assets or liabilities in USD or other currencies and need to hedge your cash-flow from changes in interest rates, IDB Bank offers prompt, personal and professional services to assist you.

We offer the following products/services:

Interest rate swaps
Interest rate caps
Interest rate floors

Interest Rate Swap

A derivative in which one party exchanges a stream of interest payments for another party’s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. Normally the parties do not swap payments directly, but rather set up a separate swap with a financial intermediary such as a bank.

Fixed-for-floating rate swap
Floating-for-fixed rate swap
Floating-for-floating rate swap

Corporations will often look to hedge their revolvers or loans. If interest rates are going lower they may be interested in swapping a fixed-rate loan into a floating rate. If however, rates are moving higher they may want to protect themselves from a floating-rate loan by swapping into a fixed-rate.

Interest Rate Cap

A series of call options (caplets) on a specified reference rate, usually LIBOR. The buyer profits at the end of each period in which the interest rate exceeds the agreed strike price of the cap. An example of a cap would be an agreement to receive a payment for each month the LIBOR rate exceeds 2.5%. Corporate borrowers often buy insurance, in the form of a cap, to protect their borrowing rates from going higher.

Interest Rate Floor

A series of put options (floorlets) on a specified reference rate, usually LIBOR. The buyer profits at the end of each period in which the interest rate falls below the agreed strike price of the floor. Corporations holding investments in a weakening interest rate environment often choose to buy insurance, in the form of a floor, to protect the interest rates earned on the investments from going lower.

Non-deposit investment products: (1) are not insured by the FDIC; (2) are not deposits or other obligations of IDB Bank or any other affiliate; and (3) may lose value. Certain non-deposit investment products are not available to U.S. citizens or residents and may not be available for purchase or sale in the U.S.

For more information, please contact:

Patricia Lifson
FVP, Head of Treasury Trading
(212) 551-8141