Market Order, what is it? Learn more
A market order is an instruction given to your currency consultant to make a buy or sell trade. This is usually done immediately, however you can add in ‘triggers’ such as a Limit Order or a Stop Loss and the order will be completed at some time in the future, based upon market movements.
Why use them?
They are useful for companies that do not necessarily need to make international payments at a particular time, but will do so in the medium to long term. At Smart Currency Business, one of our currency specialists will help determine which type of market order is right for you. Smart Currency Business offers different types of Market Orders:
- Limit Order
- Stop Loss
What is a Limit Order?
A Limit Order is an instruction given to buy or sell a currency at a specified rate, or better. If you need to make a known payment at some point in the future, you can plan to take advantage of a positive currency movement.
What is a Stop Loss?
A Stop Loss order is an instruction to buy or sell a currency once the rate drops to a certain level. This type of order helps prevent companies from losing their profits during adverse currency fluctuations.
Both of these types of market orders should form part of your treasury management programme to prevent you from losing your underlying profits by gambling on a favourable market rate at the time when you need to make the payments.