Foreign Currency Options

Foreign Currency Options

Spot Contract

This is when the trade is agreed based upon the rate available at the time from the live market, we then enter the market and use company funds to purchase the currency on your behalf and await client payment, as soon as these monies are received the purchased currency is transferred to the clients preferred account. This is one of the most common Foreign Currency Options

Forward Contract

An option where-by we can fix the rate of exchange based upon the spot rate, forward anywhere up to 24 months in advance based upon a 10% deposit, securing clients against any fluctuations in the market over that period of time.This is a popular option when buying or selling a property abroad

Limit Orders

Often clients budget for a rate of currency exchange, if the market has not hit this point and they have time to wait, we can put a limit into the market, this means that if the desired rate is achieved, we will buy the currency out and request settlement.

Forward Limit Orders

Another option is to combine the two contract types, if you are looking for a specific rate of exchange we can put a limit into the market for a forward rate to a set date, if the market reaches the desired rate we will then ask for the deposit amount to be paid to fix the forward to the date you have specified.

Stop-loss Orders

If the client is worried that the exchange rate may fall dramatically, therefore losing them vital points in their exchange rate, we can put into place a stop-loss order whereby the client instructs us to book out the currency if the rate hits a pre-determined low. At this stage we would then request settlement of funds.

Limit & Stop-loss Benefits

By placing an order directly into the market you are guaranteed not to lose your exchange rate, as soon as the market hits the low or high you are waiting for, the currency will be booked out immediately. This means that even if the rate is achieved on a Sunday or at three in the morning on Wednesday, you will be able to secure this exchange rate, the currency will automatically be booked and we will request settlement. See also How to send your funds

Find out more on how contract options can get the best exchange rates