Foreign Exchange Explained
When you buy and sell assets overseas or move to a new country you are exposed to the foreign currency exchange markets and currency risk. This is especially true when buying a property overseas; adverse currency fluctuations between the dates of purchase and completion can prove to be extremely costly.
It is impossible to predict the future movements of currency markets with any degree of accuracy, but, depending on your circumstances, there are options available that might mitigate the risk:
Foreign Currency Options:
- Spot Contract
If you have funds available and wish to exchange currency immediately.
- Forward Contract
When a transaction requires you to make a payment or series of payments in another currency in the future, you can purchase a Forward Contract.You can fix your exchange rate for up to two years, with the option to draw on the funds at any time, thus removing the currency risk and protecting against adverse market movements.
- Market Orders
Whether you have the flexibility to wait for favourable markets or need to protect a budget.Market Orders provide trading options and gives you control.You nominate your trading range or target rate and the FX Company will monitor the market and execute your trade to your best advantage.
Information provided by:
Tel: 02 96 39 96 73
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