Foreign exchange contracts

Spot contract

Buy or sell a currency for immediate delivery. Spot contracts are suitable if you want to receive your currency quickly and efficiently while achieving the best rate available.

Forward contract

Fix an exchange rate at which you buy or sell currency for delivery at a later date (up to two years). Forward contracts protect against adverse currency movements and can be used to lock into favourable exchange rates.

Market orders

A stop-loss order

Set a minimum level at which you buy or sell your currency. Your order will be fulfilled automatically if this rate is reached, effectively guaranteeing a minimum rate at which your currency will be exchanged.

A limit order

Set a higher target exchange rate at which, if this rate is achieved, you buy or sell your currency. If you run a limit order in parallel with a stop-loss order, the exchange rate at which you trade is guaranteed within a given range, giving you the advantage of predictability.

As currency markets are always on the move, we monitor your orders constantly. With your approval, we will keep you informed and make sure that levels are amended in response to current market conditions. The flexible nature of market orders, coupled with the expertise, market knowledge and dedication of our Dealers, will ensure that your foreign exchange needs are managed proactively, 24-hours a day.

Options

A foreign exchange option provides the right – but not the obligation – to enter into a foreign exchange contract at a known exchange rate on a known future date.

Options provide a guaranteed future rate of exchange, but unlike a forward contract, you are not obliged to deal at that rate. If the market rate is in your favour when an option matures, you can let it lapse and choose to deal in the ‘spot market’ at the more favourable rate.

• Hedge to protect against adverse currency market movements
• No deposit required, payment in the form of a premium
• Flexibility to book a spot contract, if the market moves in your favour

Please click here for more information about our options products.

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Foreign exchange options can carry a high level of risk to your capital and are not suitable for everyone. You should seek independent advice if necessary.

TTT Moneycorp Limited is authorised and regulated by the Financial Services Authority for the conduct of designated investment business and the provision of payment services.