React to sudden fluctuations in values by placing instructions in advance and committing to buy or sell when a currency pair hits a certain rate.
The rate and time period for exchange is agreed up-front and the transaction is automatically actioned, as-and-when the agreed value is reached - so that your desired rate can be achieved whenever possible.
Types of Order:
- Limit Orders
These are used to achieve a better rate of exchange and maximise the return on your foreign exchange transactions, aimed to take advantage of spikes in rates.
- Stop Loss Orders
These are designed to protect you against negative rate fluctuations that could detract from your costed levels or targeted hedging levels.
Features of Orders:
- Good til Cancelled (GTC)
These give you the ability to cancel an order at any time, so long as the agreed rate has not been reached.
- One Cancels Other (OCO)
This regulates Limit Orders and Stop Loss Orders when both are live on your account. If a Limit Order rate is reached for example, a corresponding Stop Loss Order will automatically be cancelled out.