Importing a product or service from a supplier overseas for use of the people in South Africa? You have lined up the best deal and agreed upon a price. At this point, you will need to know what the exchange rate is for the payment of the goods or services. Only then can you work out the cost of the product or service more accurately. You can either buy a spot Forex deal, which is an immediate deal, or you can hedge yourself in the forward market by booking a Forward Exchange Contract (FEC). The latter allows you to book today’s exchange rate to be paid at a point in time agreed upon between you and your supplier. This way, you protect yourself against the fluctuating exchange rates and know exactly what your costs and profits will be at the time of payment, and you can cost your product or service to the market to which you are selling.