Stop Loss and Limit Orders
How do Stop Loss and Limit Orders work?
If you are undecided when to secure your exchange rate but have a best or worst case rate in mind, you can use a Stop Loss or Limit Order to automatically buy your currency if rates change.
For example, if your target or budgeted rate for your property purchase is not currently available, a Limit Order will automatically buy for you should the market move in your favour.
You can set any rate you like, but of course the higher you aim, the less likely the order is to “fill”.
Conversely, if you have a budgeted rate in mind which is below available levels, or a worst case rate, you can set a Stop Loss Order to automatically buy for you should rates move against you. This protects you from rates falling any further, which might otherwise make your property more expensive than you had planned for.
You can use both types of order at once, setting a target rate and a worst case – don’t assume that markets will simply move in your favour, as the opposite is just as likely.
In both cases, orders are “Good until cancelled” and will be placed in the market on your behalf until they either “fill” (in which case we will inform you immediately) or are cancelled. You can discuss both options with your dedicated account manager at A Place in the Sun Currency – you don’t need to send us any funds in advance, but once an order has been filled we ask for payment of the selling currency (usually Pounds sterling) within a couple of days.
As currency markets move every second 24 hours per day, Stop Loss and Limit orders also reduce the need for you to track rates – even if markets move overnight to your desired level, your currency will be automatically bought and we’ll let you know in the morning.