Euro and lei, deal by deal
Flows that change with each deal
You buy and sell in euro or lei as opportunities come up, sometimes converting one way and sometimes the other. What you need is execution you understand, when a deal needs it.
For traders
You buy in one currency and sell in another.
Between the purchase, the sale and the moment the proceeds arrive, you hold two currencies against each other. What matters is how long that gap lasts and which parts of it are already agreed.
Two common shapes
How trading flows differ
Some traders move between euro and lei deal by deal. Others buy in one currency and sell in another across a longer cycle.
One currency in, another out
Buying in one currency, selling in euro
You buy stock or raw material in a currency other than euro and sell it on in euro. From purchase to collection, the value of what you sell moves against what you paid.
The trade cycle
Where the exposure lives
The exposure starts when one side of the trade is fixed in one currency and the other side is not yet settled in the other.
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The purchase is agreed.
The amount you owe is now fixed in the supplier's currency, and so is the date it is due.
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The supplier is paid.
You buy that currency and send the payment. Its route, cost and deadline are their own questions.
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The sale is collected.
The proceeds arrive in the sale currency. Until then, what they are worth against the purchase is still moving.
Confirmed or expected
Not every trade is a forecast
Trading is uncertain, so it is easy to assume there is nothing to plan. But a signed purchase or a confirmed sale is a defined amount, in a known currency, on a known date. That part of your exposure is real, even if the next deal is not.
Separating the two is the useful first step: what is signed or invoiced, and what you expect but have not agreed. They are planned differently, and only the first is a fixed obligation.
Converting and paying
What to settle for each deal
These points apply whoever you convert and pay with.
Direction, amount, date
Say which currency you sell and which you buy, the amount and its currency, and the date the money has to be there.
A rate with its terms
A usable rate comes with a time, a direction, an amount, a settlement date, the fees and how long it stands. A screen rate is a reference, not a price you can deal at.
The supplier payment
The currency on the invoice, the total cost of the payment including any intermediary charge, and the deadline in your contract.
The gap between the two
How long from paying for the goods to collecting for them. A short, regular cycle is a different question from a long or irregular one.
Your trading flow
Do you know both currencies before each deal is agreed?
Take one recent or upcoming trade: what you bought, what you sold, and how long the money was out.
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- The purchaseIts currency, and when the supplier is paid.
- The saleIts currency, and when the proceeds arrive.
- What is agreedWhich deals are signed, and which are expected.