What are FX orders?

Foreign exchange (FX) orders are pre-set instructions you provide to an FX dealer, outlining how and when you'd like to buy a foreign currency.

The simplest type of FX order is a market order, which allows you to buy currency at the current market price for the fastest possible execution. This is ideal when speed is your top priority for a transaction.

For those seeking more control, advanced FX orders let you set a specific exchange rate at which you'd like to make a purchase. The transaction only goes through if your chosen rate is reached. This ensures you secure an exchange rate that meets your preferences without needing to constantly track market movements or manage your currency risk.

We offer three types of forex orders designed to suit different needs: limit orders, stop-loss orders, and OCO (one-cancels-the-other) orders. Each is tailored to help you manage your currency transactions effectively; explore how they work below.

Types of forex orders we arrange for businesses

FX limit order

An FX limit order allows you to buy or sell currency at a higher rate than the current market price. It's a great choice if your currency is trending upward and you expect further growth.

You set the target exchange rate you're willing to accept and your trade will automatically execute if the market reaches it.

Keep in mind that a limit order isn't guaranteed to be fulfilled, though – if the market never reaches your target rate, the trade won't go through.

Stop-loss order

A stop-loss order essentially works as the opposite of a limit order. It's ideal if you anticipate a reversal in an upward trend and expect the exchange rate to start moving against you.

As such, stop-loss orders are designed to protect you from market volatility and unfavorable shifts in exchange rates without needing to actively monitor rate movements.

Be aware that short-term price fluctuations could trigger your stop-loss order, meaning you could lose out if the market quickly turns around again.

OCO order

OCO orders combine the features of limit orders and stop-loss orders to protect you both ways. You set a target limit value above the current exchange rate plus a stop-loss value below it.

If a rate rises to your specified limit, the trade will execute and your stop-loss is automatically canceled. Conversely, if the rate falls to your stop-loss level, the trade will occur at that rate and your higher limit will be disregarded.

OCO orders offer balance by allowing you to take advantage of favorable rate movements while protecting against shifts in the other direction.

How can my business benefit from forex orders?

Does your business operate internationally, with cross-border clients, suppliers, or staff, for example? Here's how forex orders with Moneycorp can benefit you:

• Cost control: Use limit orders to secure better exchange rates and reduce costs on your currency purchases.
• Risk mitigation: Find safety in choppy waters with stop-loss orders that minimize potential losses.
• Reduced manual input: Stay focused on your business with automatic execution, negating the need for constant market monitoring.
• Financial planning: Manage cash flow confidently with automated trades at predefined rates.
• Flexibility: FX orders are customizable to suit market conditions and your business needs. Our experts can arrange orders that suit your goals and attitude to risk.

Alternatives to foreign exchange orders

Our currency experts provide a range of other solutions to suit different scenarios, market conditions, and businesses. We'll recommend the most efficient, effective mix for you, either in place of or alongside forex orders.

Forward contracts

Lock in an exchange rate for a future date, typically up to a year. This tool protects you against currency fluctuations, providing the certainty of a guaranteed rate to aid budgeting and financial planning.

Spot contracts

Make a currency transaction at the current 'on-the-spot' rate. With simple, quick execution, they're ideal for your immediate currency needs.

Currency options

Forex options give you the flexibility to secure an exchange rate for a future transaction without the obligation to complete it. This protects you against unfavorable rate movements without giving up the opportunity to benefit from rises.

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*Forward Contracts may or may not require a deposit dependent upon your facility agreement.

**Our team of experienced currency risk management specialists are approved by the FCA for investment business. Following an initial assessment of your risk-appetite and investment objectives they can formulate and illustrate a bespoke solution for you to consider. Please note that Option related products are regulated investment products which can carry a higher level of risk than Forward Contracts.