Spot transactions are ideal when your business needs to make a one-off transfer. This type of transfer is quick, simple and perfect if you need to send or receive a payment immediately.
The forward contract is our most commonly used hedging tool. Define how much currency you wish to purchase and agree an exchange rate that can be used at a future date. Forwards can be booked up to a year before you purchase the currency, allowing you to accurately forecast your cash flow and manage budgets with confidence.
A limit order can help you take advantage of favourable exchange rates. You agree a target rate at which you would like to exchange. If the market moves to your desired rate, a spot or forward trade is automatically executed.
A stop-loss order is essentially the opposite of a limit order, and protects you against unfavourable market movements. You agree the worst-case rate that you are willing to accept for your trade and if the market drops to this level then a spot forward trade is automatically executed at this rate to ensure you do not incur any further losses.
Market orders in combination
Place a stop-loss order, protecting your lowest acceptable rate, and a limit order, capturing your most favourable target rate, at the same time and we can dictate that when one of the orders is filled the other is automatically cancelled. Placing market orders in pairs allows you to take advantage of favourable market movements whilst knowing that your business is trading within a range of comfort.
Handling a large number of overseas payments to both employees and suppliers can be time-consuming. We make things easy, whilst ensuring you benefit from preferential rates. Create files from your ERP, AP or treasury system, upload them to your online account and we will automate the payments to your beneficiaries, reducing the risk of error and fraud.
An Option allows you to pay a premium to secure the right to trade at a specified rate without the obligation to do so. Options give you the security of a guaranteed rate but the freedom to benefit from positive market movements should you decide not to exercise the right to trade. We have a wide range of options that can be used to protect your business from risk and keep costs within budget.
Options are provided by our subsidiary Currencies Direct Financial Markets (CDFM). FX derivative products can carry a high level of risk and may not be appropriate and/or suitable for everyone. Please take all reasonable steps to understand certain key concepts before transacting in FX derivative products. More information is available in our product disclosure statement.
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