Buying in Tranches

Reducing Uncertainty

EXCHANGE RATES & TIMING

If you are undecided when to secure your exchange rate, but have some time on your side, you might want to consider breaking a large currency exchange into several smaller tranches.

Exchanging a large quantity of money can be stressful, and many of our clients have to decide between securing a rate early on in their purchase process (in case it should worsen) or waiting until nearer their completion (in case it should improve).

The problem of course, is that rates can move either way during that period, and any movement has a significant impact on your budget.

By breaking up a property purchase amount into several smaller tranches, you can effectively hedge your bets. Should the market improve, you will still benefit, but should it fall, you have some currency secured at what turns out to be an excellent rate.

This method can also be combined with using our forward contracts, to secure rates for several amounts for a date in the future.

It’s important to understand what impact a moving rate has on your budget, and depending on the rate at the time and your available funds, we can help you work out if this could be a sensible option.

Please register with us and speak to your dedicated account manager, to ensure we can give you all the relevant information to inform your decisions.