With market orders you can benefit from future currency movements as and when they happen.
SO HOW DO MARKET ORDERS WORK?
Generally speaking, they are instructions placed to buy or sell a currency when it hits a specified rate during a set period of time. It allows you to secure an improved exchange rate when the markets move in your favour or stop out a position to limit your downside risk when the markets move against you.
Market orders work for both spot transactions and forward contracts.
WHY PLACE A MARKET ORDER?
- Take advantage of and protect your funds against currency fluctuations
- Execute transactions 24/7, across all trading sessions, giving you complete market coverage
- No need for you to observe every move in the markets
HOW DO I PLACE A MARKET ORDER?
When you place a market order you need to specify the target exchange rate and the timeframe in which the order can be executed. It doesn’t cost anything to place a market order with us and you can cancel or alter it, up to the point of execution.
Once placed, you’ll receive a confirmation email with details of the order. And when executed, you’ll automatically receive an email with the transaction receipt.
WHAT DOES EBURY OFFER?
Our finance specialists will help you determine the best parameters for your market order. You can choose a:
Limit market order: We also call this ‘best-case-rate’ limit. So if the currency rate hits this limit during the agreed timeframe we’ll execute the order on your behalf.
Stop loss order: Also referred to as the ‘worst-case-rate’. If the market moves against you during the agreed timeframe we’ll execute the order on your behalf to cut your losses.
One cancels other: Define a limit market order and stop loss order. If one is executed the other is automatically cancelled.
An example: Market orders established at the 1.33 and 1.34 levels between GBP/USD.
These orders would have automatically filled between 21.00 and 23.00 GMT on 12/12/2019. An order for 1.35 would not have filled.
Evolution of GBP/USD (01.12.2019 - 30.12.2019)
If you would like to discuss any of the subjects mentioned above with us in more detail, get in touch with our team today.