Whatever your situation, it is important to identify and minimise the risk of the market moving against you and decreasing the value of your capital. Our goal is to make sure you have all the right information and tools you need to protect yourself from fluctuating exchange rates. 

Essentially your currency options depend on whether you have access to some or all of the funds you wish to transfer. 

Let's assume that you are relocating to New Zealand:

 

SPOT trade

If you have your funds ready then you have two options:

Safe option! You can buy all of your currency now and fix the cost. This way you do not have to worry about fluctuations in the currency market and you can transfer your funds to your currency account to earn interest!

Gambler?! You can buy the currency at the last minute. You will be left with little choice but to accept the rate that is available at the time, which could induce some sleepless nights ahead, especially if you are on a tight budget.

 

Time Option/Forward Trade

Your funds may not be available as they might be on a high deposit account or you are releasing equity to raise finance. Whatever your reason you still have options:

Even if you do not have access to all of your funds you can still fix your rate for a future date by using one or more forward trades.

In essence, a forward contract means that you can buy the currency now, and pay for it later (when you need to make the individual stage payments). You will be required to pay a 10% deposit now and the 90% balance upon the maturity of the contract. For example, if you wish to buy £50,000 worth of new Zealand Dollars but do not need to send them for 3 months, you can agree the exchange rate now, place a £5,000 deposit, and pay the remaining £45,000 balance in 3 months. This way you can benefit from fixing your costs and not have to worry about the fluctuating exchange rate. You have the option of fixing rates for up to two years in the future.

 

Limit Order

If you see yourself as a market guru and want to achieve a certain rate but don’t have the time – we can help you!

If you have a view on the market and believe that it could improve in your favor before the completion of your property we can help you by placing a limit order. This allows you to specify the rate you would like to achieve. We monitor the markets on your behalf and, should the market reach your predetermined exchange rate, your currency is bought or sold automatically. Your order is live 24 hours a day and can be amended or cancelled at any time prior to the transaction taking place.

At this stage it is always important to remember one thing; you would never agree to buying something without know the price and without fixing the rate that’s exactly what you are doing

Please do not hesitate to speak to one of our account managers to discuss your options

 

 

How To Apply