4 Simple methods for saving on foreign exchange transactions
Simply put – Market Orders allows you to buy or sell foreign currency at a rate equal to or better than a rate of your choosing. It should be noted that these orders are not guaranteed as the orders will only fill if the market reaches your desired rate.
There are 4 main types or orders: Buy limits, sell limits, buy stop, sell stop
Click to view the full market order infographic here
What it is? Buy Limit Orders allow you to set a buy order at a rate that is currently below the current market rate.
Why it matters? A Buy Limit Order allows you to use flexibility to your advantage, allowing you to potentially take advantage of rate movements that positively impact your bottom line.
Use it when… Set Buy Limit below current market rate because you believe the market will go back up.
What is it? Sell Limits Orders allow you to set a sell order at a rate that is currently above the current market rate.
Why it matters? A Sell Limit Order allows you to take advantage of market movements to get more currency in exchange for the currency you are selling if the market hits your desired price.
Use it when… Set Sell Limit Order above current market rate because you believe the market may go down.
What is it? A Buy Stop Order allows you to set a buy stop at a rate that is currently higher than the current market rate.
Why it matters? Buy Stop Orders are used to protect you from market movements against your position by allowing you to set a maximum rate you are willing to pay.
Use it when… Set a buy stop at a rate that is the highest you would be willing to pay in order to stay on budget.
What it is? A Sell Stop Order allows you to set a sell order at a rate that is currently below the current market price, which helps avoid loss.
Why it matters? Sell Stop Orders are placed to ensure you are protected against downward movements of the currency you are looking to sell.
Use it when… Set a sell stop at a rate that is the lowest rate you are willing to sell at. Should that rate ever be hit, your transaction will go through, saving you from a heavy loss.
To speak with a Foreign Exchange Specialist, or to get a free, no obligation quote on your foreign currency needs call 1.866.752.7135.