Do you have a target rate of exchange you would like to achieve? Would you like to minimise your currency risk against fluctuating markets?
Booking an Order allows you to select the exchange rate you would like to achieve and FTT will handle the rest for you, booking your currency exchange if your rate becomes available.
There are three Order types available:
- Profit-Order: Choose a rate of exchange better than what the current market is offering.
- Stop-Loss Order: Protect yourself from a falling market by choosing a lower rate of exchange than what the current market is offering.
- Collar the market: Place both a Profit and a Stop-Loss Order so you can be confident your rate will trigger between these set boundaries. Please note, if one Order triggers you will need to login to your account to cancel the other Order which will still be active.
All you need to do is:
- Tell us if you would like to place a Profit or Stop-Loss Order, along with your desired exchange rate.
- FTT Global will monitor the markets for you 24/7.
- If your desired rate becomes available we will automatically book the currency exchange on your behalf and email you confirmation on how to send us your funds.
Scenario: Take Profit Order
A motor cycle importer needs to make a EUR 250,000 payment in 10 days’ time.
The current rate of exchange is 1.4825 Euros to the Pound requiring the importer to pay £168,634 to buy the required amount of Euros. He would like to pay less for the Euros and decides to place a Profit-Order at a rate of 1.4925.
FTT Global monitors the currency exchange rates 24/7 for him and in three days’ time at 4am, the currency exchange rate hits 1.4925.
The Profit-Order immediately triggers and the client achieves the desired exchange rate of 1.4925. FTT Global immediately notifies the importer that the rate has been achieved and the importer now only pays £167,504. He makes a total saving £1,130 on his currency exchange.
Scenario: Stop Loss
A software importer needs to make a USD 100,000 payment in around 30 days’ time. The exact payment date is not yet confirmed.
The importer does not want to make the currency exchange until the payment date is confirmed but is worried that the rate may drop in the next 30 days, requiring him to pay more for the US $100,000.
The current rate of exchange is 1.7956 US Dollars to the Pound and the importer would pay £55,691 for US $100,000. He decides to book a Stop-Loss Order at a rate of 1.7900. This means that the most the importer will need to pay for his US$100,000 is £55,866.
FTT Global monitors the currency exchange rates 24/7. In 14 days’ time at 8pm, strong economic figures are released in the US. The US dollar strengthens and the currency exchange rate hits 1.7810 US dollars to the Pound. Had the importer not entered a Stop-Loss Order, he would have needed to pay £56,148 for his $100,000. Instead the Stop-Loss Order filled at 1.7900 and the importer pays £55,865 for his $100,000.