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Posted June 8th, 2011 by Charles Purdy

Using an ‘Order to Buy’ to secure a ‘Forward’ and a ‘Spot’

Using an ‘Order to Buy’ to secure a ‘Forward’ and a ‘Spot’

People move money abroad for various different reasons and in many different ways. The purpose of your currency exchange could affect the way you do business with the currency specialist. There are several factors to take into consideration, such as:

•  How much money you wish to move.

•  What (if any) your budget is.

•  How often you wish to move money.

•  How soon you wish to move it.

An ‘Order to Buy’ is just what it sounds like. If you need to move money overseas but the exchange rate has not fallen to a level you are happy with, speak to a specialist. They will talk you through the process of moving your money and can also give you a guided estimate of the way the exchange rates are moving. If you have a set budget that you wish to stick to, a rate at which you would be happy to purchase your currency at can be agreed in advance.

The trader then keeps a eye on the market and they will purchase the currency on your behalf if and when the rate reaches the agreed amount. The ‘Order to Buy’ contract is ideal if you are not in a hurry to transfer your money, or under any time constraints. Although the market can never be predicted, traders can estimate the direction in which it will move due to the history of the rate trends.

A ‘Spot’ contract is set up when you are happy with a rate of exchange, and you want to buy the currency straight away, to use immediately, or soon after the purchase. Once the rate has been verbally agreed by yourself, the trader will purchase the lump sum. This will need to be paid for within two working days. To do this, simply instruct your bank to transfer the money into the specialists Client Account.

A ‘Forward’ contract is perfect if you are on a budget but do not need the money until a later date. You can ‘book’ the currency at a fixed rate up to 18 months in advance, to use at a later date. If you have a budget of, say £25,000 and for that you can get €30,000. By using a forward, you will still pay £25,000 for the same amount of euros in a year’s time. If however you do not use a forward and the rate changes for the worse, €30,000 could cost £35,000. That’s a potential loss of ten thousand pounds!

The Order to buy can be used to secure a ‘Spot’ contract as well as a ‘Forward’, whichever will suit your needs best. Simply talk with a specialist today and see how they can help you.

If you haven’t yet collected your FREE report from Smart on "Why Overseas Property Buyers Lose Money… and how YOU can avoid it" get it here

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Posted June 2nd, 2011 by Charles Purdy

Order to Buy/Call – Explained

What is an ‘Order to Buy’? If you need to move money into a foreign account but have not yet seen a rate that suits your budget, speak to a specialist. They will talk you through the process of moving your money abroad and will also be able to give you a guided estimate of  Continue Reading…

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