We can offer our clients various ways to buy currency, including purchasing straight away to have your funds wired to your account within 24 hours. We also offer ways to freeze the current rate for up to 2 years to help protect against adverse rate movements. In addition we offer orders to buy your currency if the rate hits a pre-agreed level. Below is a breif outline of themain contract types we offer. To discuss further or get a quick quote contact us today.
Spot Contract
(Buy your currency today)
This is the most popular way to buy currency. You fix a rate over the telephone, settle within 2 days, and your currency is transferred by priority transfer to the account of your choice. The rate varies throughout the day as we buy live from the market, and can be up to 5% better than your bank or existing broker may offer.
Forward Contract
(Fix into the Future)
You can fix today’s rate of exchange for up to 2 years, protecting you against volatility and helping you to budget. You lodge 10% of the total to be converted within 2 days, with the remaining balance due when you want your currency transferred. This type of contract really helps budgeting for business’s and those buying or selling property abroad.
Limit order
(Hold out for a better rate)
Secure your currency when your desired rate becomes available; particularly useful if time is on your side and you think the rate may get better. This allows you to aim for a higher rate in the hope that things will get better.
Stop loss order
(Protect against rates dropping)
Your currency is exchanged if the rate goes below a pre-determined level. Combined with a limit order, you can hold out for a better rate while protecting yourself from a sudden fall in the market. This gives you a worst case scenario so you don’t end up paying more than necessary for your currency.
Labels: COntract Types, Forward Contract, Limit Order, Spot Contract