Using Moneycorp services

Customised strategies for managing foreign exchange exposure

Moneycorp will design a solution to suit the specific needs of your company. We recognise that every business faces challenges particular to the environment in which it operates. Our team of market experts will use the most appropriate combination of tools available to create a strategy that protects your bottom line. Your personal Dealer will work with you to anticipate and manage your foreign exchange exposure, maximising profitability from your overseas transactions and protecting you from currency risk.

The following outlines the financial tools Moneycorp can use to help your business.

Spot Contracts - buy currency for immediate delivery
A 'spot contract' is an agreement to buy currency for immediate delivery (up to five days ahead). Spot contracts suit businesses needing to receive their currency immediately, at the most competitive exchange rates available.

Forward Contracts - lock into competitive exchange rates to hedge your future risk
A 'forward contract' enables you to lock into an exchange rate for delivery up to two years in the future. This equips your business to protect itself against adverse currency movements. Forward contracts are ideal for companies concerned that future exchange rate fluctuations may erode their profits, or who wish to fix a favourable rate to apply to future cash flows.

Market Orders - track the market and buy at your target rate
If your business can be flexible regarding timing of currency purchases, you can take advantage of our market expertise to monitor the markets, set a realistic target rate and buy when markets reach that level. There are two types of market order which can be used independently or together to realise a certain rate.

A Stop Loss Order
A 'stop loss order' allows clients to set a minimum level at which currencies are bought or sold. Stop loss orders are suitable for companies wanting to protect their bottom lines while allowing for currency markets to move in their favour. A stop loss order can be raised as the market rises, increasing protected profits.

A Limit Order
A 'limit order' allows a client to set a higher target exchange rate at which, if the rate is reached, their currency will be purchased. A limit order is suitable for businesses with funds to exchange, who are looking to make the most of favourable market movements and can wait until a realistic target rate is achieved.

If your company runs 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 and aiding your planning process.
 

Recognising that flexibility is paramount within the business environment, we monitor your orders constantly, keeping you informed and ensuring that levels are amended in response to current market conditions, with your approval. The flexible nature of market orders, coupled with the expertise, market knowledge and dedication of our dealing team, will ensure that your foreign exchange needs are managed proactively, 24 hours a day. It pays to use the experts.

To take advantage of Moneycorp's foreign exchange expertise, open a trading facility today. Simply click here or speak to a member of our team on +44 (0)20 7823 7400.