Transcript

One common question that we get from clients is what happens if they want to make a foreign exchange transaction but don’t like the current market rate and think that rates will actually move in their favour in the near future?

Do they just have to sit and watch the markets?

And the simple answer is no. I’m happy to say that we do have a solution for clients who are waiting for markets to move. For amounts of a hundred thousand pounds or more, you’re able to place a foreign exchange limit order, which gives you the flexibility to choose where you would like to trade should markets reach the level that you want.

We offer three types of limit order for clients:

For-profit, where you have a target rate in mind, your limit order is put on at that rate, and if the market reaches it, the transaction will be automatically executed.

Stop loss! This is a very useful if you believe that the market will move in your desired direction, but you wish to limit any potential losses should the market move against you. You set the rate that you are comfortable to trade at, thus limiting the downside or leaving any potential upside open.

One Cancels Other! This is a combination of the previous two and could be used by clients who have a view on their foreign exchange position but would also like to limit their downside in case the market moves against them. Should either part of the limit order be executed, the other part will automatically be cancelled. It is worth noting that we electronically monitor all limit orders 24 hours a day, and if markets reach the desired level, they will automatically be executed. We let clients know the next working day and the trade will be processed.

If you have any questions or want to know more about how we can help you, please do get in touch.