BUYING CURRENCY "SPOT"

This is the most commonly used transaction to buy and sell currency and is recommended when you want to take advantage of the current market conditions.

If you need to buy currency for delivery in the immediate future, a dealer will discuss a price based on the current market rates. Settlement can vary between the same day and five working days, depending on the speed with which clients can deliver incoming funds and the urgency of the transaction.

BUYING CURRENCY "FORWARD"

This transaction allows you to fix a rate of exchange for your currency, based on today’s market rates, for delivery at an agreed date in the future.

All major currencies can be bought or sold forward for periods of up to one year. A forward transaction allows you to take whole or part delivery of the currency purchased, at any time prior to the final completion date. There is also the flexibility to move the delivery date further into the future given reasonable notice. Many people use a forward deal to hedge against their foreign currency exposures and, in doing so, cast aside the worries of what may happen and how much it may cost.

USING "MARKET ORDERS"

This method of trading allows you to place an order above and/or below the market, to buy or sell currency at a specific rate of exchange.

At the point when the market trades ‘through’ that rate, your market order is ‘filled’ and your currency is safely purchased. You will then be notified about your trade by your Senior Commercial Dealer, who will then forward the contract over. Market orders can be priced above the current market price to take advantage of positive movement, or below market price to safeguard against a prolonged fall in rate. Indeed it is commonplace to use both, with your rate of exchange being dictated by which market order is achieved first.

Along with the right combination of trading mechanisms to suit your exposure or transaction pattern, timing is key. By creating a unique solution for each client, we not only reduce market risk, but also create time for financial decision makers to concentrate on other issues.