Corporate and Institutional Sales
FX - We are active in Spot, Swaps & Outright on G7 and GCC Currencies
FX Sales Desk is fully geared to offer advisory services & solutions to Corporates and Institutions for hedging of Foreign Exchange Risks.
Spot Contract - A foreign exchange contract that allows you to convert foreign currency at today's market foreign exchange rate. In most cases, final settlement occurs two business days later. Spot contracts are used when you must make a payment for products or services in a foreign currency or when you wish to convert foreign currency into U.S. dollars (USD).
Forward Contract - Forward foreign exchange contracts are used to protect your profit margin when receiving or making a foreign currency payment at some point in the future, usually as a result of foreign sales or purchases. A forward contract that "locks-in" the foreign exchange rate for a future date eliminates the effect that a change in the foreign exchange rate would have on your profits. Customers must have an approved credit facility with the bank (i.e., a foreign exchange credit line) to enter into foreign exchange contracts.
Plain Vanilla: We quote plain vanilla Options on G7 currencies
CALL and PUT Options are advanced hedging instruments used to hedge your imports and exports.
Call Options - provide the holder the right but not the obligation to purchase an underlying asset at a given price for a specified date and time.
Put Options - provide the holder the right but not the obligation to sell an underlying asset at a given price for a specified date and time.
Exotics:Barrier Options – Knock in, Knock out, KI with rebate, KO with rebate
Barrier options are vanilla European options with the addition of either one or two barriers which act to either extinguish or activate the option. They are also known as trigger options. The barrier is in effect during the whole life of the option and as such can be described as an American style barrier. The various types of barriers are knock in, knock out, double knock in, knock in with rebate, among others.
Binary options – One touch, No touch, double touch
Digital options – Range Bets, One touch, no touch & Double touch
Binary options are a particular type of barrier option. For the buyer of the binary, breaching the barrier activates or extinguishes a fixed payout. If hitting the barrier activates a payout, this will be made at expiration. The barrier is in effect during the whole life of the option and as such is an American style barrier. These options are also known as American style digitals or “All or Nothing” options. The payout can be in either currency of the chosen currency pair. Binary options can be one touch, no touch, double touch, one touch with knock in, among others.
Average option – Average strike, average rate
Compound Options – Option on a Option
Forward knock out, forward knock in
Step Premium option
INTEREST RATE DERIVATIVES:
Caps, Floors, Collars
IRS - Vanilla, Roller Coaster, Range Accruals, Constant Maturity Swaps.
Swaptions- Plain vanilla & embedded
STRUCTURED DERIVATIVE PRODUCTS:
Dual Currency Deposits
Wedding Cake Deposits
Bull Spread / Bear Spread Deposits
Commodity Linked Investments
A desire for greater portfolio diversification and more effective hedging against inflation, and the fact that commodities performance typically has low or even negative correlation with other asset classes, has greatly increased investor interest in commodities. Bank Muscat offers a wide range of commodity-linked investment strategies to suit all risk appetites and profiles. Our products guarantee all – or a portion of – your principal investment and a return correlated to commodity price movements.