Automated orders
Limit your currency exchange risk by setting a minimum exchange rate
What is an automated order?
A stop-loss order is a form of automated currency order (or market order), where there is an instruction to buy or sell currency at a predetermined target level, enabling you to capture exchange rates round the clock.
This strategic solution is a valuable currency hedging solution for businesses as it can help target a better exchange rate and protect you against further market fluctuations. Additionally, it is a preferable option for companies that do not need to make currency transfers quickly.
Why should businesses use automated loss orders?
Automated orders help companies use currency volatility to their advantage, gaining protection against currency losses and maximising any currency gains. They are “good till cancelled” (GTC), so they sit in the market until triggered or until they are cancelled. Alternatively, they can be set with an expiry date.
Market orders can be used for both spot and forward trades and relieve the burden of constantly monitoring the markets. Businesses are safe knowing that the market is working for them to achieve their target currency rate.
Benefits of automated orders
Automated orders provide a range of benefits for businesses when sending international payments, including:
- Protection against exchange rate losses
- Budgeting control: provide a minimum exchange rate you can budget against
- Professional guidance: rates monitored by professionals – 24/7
- Flexibility: your order can be modified or cancelled if needed
An automated order enables you to protect yourself against the exchange rate moving against you. It is an instruction to buy or sell currency at a predetermined ‘worst case’ exchange rate, which, if achieved, will complete your instruction automatically.
Difference between a stop loss and a limit order?
There are two types of market orders, a Limit order enables you to target a better exchange rate than is available at the time of placing the order. It is an instruction to buy or sell currency at a predetermined ‘best case’ exchange rate, which will go through automatically if achieved. By exchanging at a better exchange rate, you will receive more currency for your money.
Benefits of Limit orders:
- Control: buy and sell at the rate you want
- Certainty: currency professionals monitoring the exchange rates for you 24/7
- Flexibility: you can modify or cancel your order at any time
Combining Limit and Stop loss orders
Your business can get greater control over exchange rate uncertainty by using both Limits and Stop loss orders together. By setting both upper and lower exchange rate levels, you control the range within which the currency can move, providing you with a guaranteed exchange rate and making your currency trades far more predictable.
This solution helps you budget more effectively, protects your money from exchange rate movements that are not in your favour, and maximises your money when the exchange rate moves in a more positive direction.
Limit Order
Limit orders
– Control: buy and sell at the rate you want
– Certainty: currency professionals monitoring the exchange rates for you 24/7
– Flexibility: you can modify or cancel your order at any time
A Limit order enables you to target a better exchange rate than is available at the time of placing the order. It is an instruction to buy or sell currency at a predetermined ‘best case’ exchange rate, which if achieved, will go through automatically. By exchanging at a better exchange rate, you will receive more currency for your money.
Stop loss orders
Combination
How do automated orders work?
With stop-loss orders, you will not be required to make payment until your order has been fulfilled. The fastest way to make payment is via CHAPS if sending from a UK bank account in pound Sterling. If funds are sent in an alternative currency, a SWIFT payment or Telegraphic Transfer (TT) is required.
How can Halo Financial benefit your business?
At Halo Financial, we follow a 3-step process when working with our clients to provide the best currency solutions possible.
Running a business is challenging enough without worrying about getting the best exchange rates when sending international payments. At Halo Financial, our services are designed to make life easier for businesses to focus on the things that matter. If you wish to secure a market order, these can all be agreed upon with your Currency Consultant. We’ve created a simple, three-step process for how you can get started trading with Halo:
- Your Currency Constant will discuss your specific requirements to develop the best solution to suit your business needs.
- A custom currency strategy will be developed and tailored to your needs and those of your business.
- Your experienced Currency Consultant will continue to review this strategy to ensure it is fit for purpose and remains relevant to your business’s situation.