If you are not quite sure whether you know the difference between a limit order and spot contract then here are straight forward definitions of the most popular currency contracts. For a more detailed explanation please contact your currency dealer or enquire online.
Spot Contract
This contract enables you to send funds almost immediately. We confirm your
exchange rate on the phone in the live market. You then need to send us the full settlement amount within two working days. Once we have received your money we will forward the currency onto your nominated beneficiary by priority same day transfer.
Forward Contract
This contract enables you to fix the exchange rate at today's value for a specific time in the future, called the maturity date. You are able to say when you want delivery of the currency and this can be any length of time between 1 week and 2 years.
Forward Time Option
Is similar to a forward contract although you are able to draw down funds before the maturity date as and when you require the currency.
Stop Loss Order
This is where you agree to buy or
sell currency at a specific exchange rate. A stop loss does what it says in the sense that it offers 24 hour protection from negative market movement, whilst giving you the opportunity to benefit should exchange rates improve. It is free of charge and good until cancelled.
Limit Order
An order where you agree to buy or sell currency at a specific rate that is not currently available. With a limit order you are waiting for
exchange rates to improve, and like a stop loss it is free of charge and good until cancelled.
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