Airwallex's LockFX solution is a flexible set of capabilities that customers can integrate with that allows the customer to help eliminate any FX market risk arising from their specific workflows.
The LockFX solution is best suited to businesses that have cross-border transactions, but want to integrate a solution that removes any risk of the FX price moving between the time the business conducts a transaction with one of their own customers and the time at which they convert that revenue to repatriate revenue back to their home domicile.
It is commonly used by customers that have the need to lock in prices for a period of time through a commercial transaction, such as in travel booking processes or marketplace platforms. It is also used in situations where a customer has a workflow with manual intevention, such as 2-step approvals on large transactions.
LockFX Transaction Flow
The LockFX transaction flow requires obtaining a price quote prior to requesting a conversion. Following retrieval of a price quote, the quote ID will need to be passed to Airwallex alongside a subsequent conversion request.
The outcome of obtaining a quote will be that the price returned to you on the quote will be guaranteed for the length of the validity period requested, regardless of ongoing market price movements. This allows for certainty in the rate at which you will be executed while users on your platform continue with your existing workflows to book or purchase goods or services.
LockFX pricing continues to build on the price produced by the MarketFX pricing engine. Further adjustments are made to the price to take into consideration factors including:
- The validity length of the requested quote;
- Whether the quote requested is valid for multi-use or single-use
- The refund variables assigned against your account (if any)
The integration manager working with you on the integration can guide you through the optimal set-up in LockFX variations to meet your business requirements at the lowest FX cost.