If you would like to target a rate that’s not currently available in the market, then market orders could help you achieve this.
“The market information my personal dealer provides, regarding FX trends, enables me to finalise my foreign currency strategy accurately - saving me time and money”
Rolling Components, Raja Sekar, FD
There are two main types of market orders that your business can utilise. These, coupled with the expertise, market knowledge and dedication of our dealers, ensures that your foreign exchange needs are managed proactively 24-hours a day.
A limit order - this allows you to set a 'best case' target exchange rate above the current market level at which your transaction (buy or sell) will be automatically executed - locking you in at this more favourble rate.
Limit orders are useful if you have upcoming payments but are not restricted by tight deadlines and therefore have time to try and achieve a better exchange rate.
A stop loss order - this allows you to set a 'worst case' exchange rate lower than the current market level. If the market moves against you, this type of order will be automtically triggered, locking you in at that rate and protecting you from further losses.
Stop loss and limit orders are often run together to form a 'collar'. This enables companies with no particular time restrictions to aim for a favourable exchange rate, whilst ensuring that, should the markets turn against them, they don’t lose out. (At the moment your stop loss or limit order is triggered, the other is immediately cancelled.)
To find out more about forwards or discuss our other foreign exchange services for your business please contact us online or call us on 01901 5252.