Currency Exchange - Case studies
Buy your currency immediately at a great exchange rate or take advantage of sudden exchange rate movements. Have a look at our case studies to learn more.
Spot Contract
Mr. and Mrs Henderson recently purchased a small chateau in the Charentes region in france. The new property cost EUR140,000. Mr. Henderson was offered an exchange rate of 1.4804 by his high street bank. Using FC Exchange the Hendersons were able to secure an exchange rate of 1.5120, saving £1,976.
Forward Contract
Frank Williamson purchased a new build beach property in Portugal for EUR230,000. The completion of the property was delayed for 2 months. Frank, realising that the Euro exchange rate was at it's best level for several months, entered into a forward contract to buy EUR230,000 at an exchange rate of 1.5210. Two months later the Euro exchange rate had fallen to 1.4750 but Frank had secured his Euros at 1.5210, and fixed the cost of his property, saving him £4,716.
Regular Payments
Dr. Susan Phillips makes regular monthly transfers to her account in Cyprus to service the mortgage repayments on her holiday villa. Using her high street bank to make the transfers she encountered the problem of poor exchange rates as well as long delays, up to 10 days, in her money arriving in Cyprus. Using FC Exchange, Dr. Phillips has taken all of the hassle out of the process. Her funds are transferred to FC Exchange by standing order. As soon as they arrive every month they are exchanged at a great exchange rate and sent to Cyprus immediately, arriving safely, quickly and saving her approximately £850 per year.
Stop Loss Order
James is importing a V8 Mustang from America. The car costs USD19,000. The current GBP / USD exchange rate is 1.92. James knows that at this exchange rate his car will cost him £9,895 but he thinks that the exchange rate is going to move in his favour. He wants to limit the cost of the car to £10,000 and also have the flexibility to see if the exchange rate gets better, confirming his hunch. He instructs FC Exchange to put in a stop loss order to buy USD19,000 at an exchange rate of 1.90. If he is right about the USD he will get a better exchange rate and his car will be cheaper but if he gets it wrong and the exchange rate worsens, his currency will automatically be purchased at a rate of 1.90, limiting his cost to £10,000.
Limit Order
David would like to send EUR20,000 to his bank account in Spain. He has seen that the Euro is currently trading at an exchange rate of 1.50 and he is in no hurry to make the transfer as he would like to achieve an exchange rate of 1.52. He instructs FC Exchange to put in a limit order to purchase EUR20,000 when the exchange rate reaches 1.52. If the exchange rate spikes to a rate of 1.52, David would have achieved his target and his Euros will be purchased at his desired exchange rate.