Are Advance Payments Restricted Cash? A Look into Forex Trading

5 min read

Advance payments restricted cash forex are payments that businesses make to crystallize an exchanged of goods and services. Advance payments are typically used when dealing with international transactions or high value orders. These payments are typically restricted and allocated to a separate account for accounting purposes, to ensure funds are available and to minimize potential risk associated with foreign exchange. Other uses include financing, hedging, and securities trading.