Ganclan

Answers to all your foreign currency exchange questions helping you learn how to send money worldwide and save.

For those looking to transfer money on a regular basis, exchange rates can be fixed for a period of two years. This means that changes to current exchange rates will not affect the cost of your transfer and can therefore be hugely beneficial.

The fixing of exchange rates is done through Forward Contracts which can be either flexible or static. Flexible Forward Contracts are used by those who are uncertain about when their funds will be required. This will allow the money to be received or withdrawn earlier than expected.

Normal Forward Contracts do not offer this option, however, and are therefore only available on the pre-arranged date. These contracts will require 10% of the trading amount to be provided on the trade date with the remaining 90% being needed when the funds are required: known as the value date.

This is just one way in which companies looking to send money online uk can reduce the risk of money transfers, with Limit Loss Orders being another example. A Limit Loss Order or Limit Order is an agreement which allows companies to book currencies when they reach a pre-determined value and can be placed either above or below the current exchange rate. Professionals will be able to advise individuals on the best time to transfer money but a Limit Order will allow them to work autonomously, saving you time and potentially money.