Limit orders enable you to convert money when an exchange rate price reaches a pre-determined level.
Using a limit order in currency transfers
If you want to convert money into a foreign currency but want to waiting until the exchange rates moves in your favour you can use a limit order to do the conversion automatically.
By using a limit order our dealers will place an order in the market to convert money at any price you choose.
For example: If you want to convert £100,000 into USD buy think the currency price will move in your favour. iF the current rate is 1.50 and you think it will go up to 1.58 using a limit order will mean that if the price hits 1.58 your conversion will be done without you having to keep an eye on the market all the time. Ensuring you get your price even when you are not keeping an eye on the market.
In this example if you successfully used a limit order at 1.58 instead of converting funds at the current market price of 1.58 you would receive an additional $8,000 on the conversion.
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Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.