Foreign exchange orders

A Foreign Exchange (FX) Order is a service provided by Customer Treasury Services to help customers manage their foreign exchange exposures. FX Orders are used by businesses aiming to achieve a specific exchange rate in order to protect or maximise profitability on trade transactions, and we will work closely with you towards achieving your business objectives. FX Orders can also be used by individuals aiming to achieve a specific exchange rate for a transaction such as the purchase or sale of an asset denominated in a currency other than euro.

Customers who wish to achieve a specific exchange rate may leave an order with us to exchange a fixed amount of one currency for another currency at a specific rate, above or below the current rate. The main advantage of using this service is that your order will run 24 hours a day (excluding weekends and holidays) and therefore there is a greater probability of the Bank being able to provide you with the rate you have ordered. You may cancel or amend your order at any time before the ordered rate trades and has been booked by us. On execution, the Order will be transacted as a Spot Foreign Exchange rate.

Orders can be placed either directly with Customer Treasury Services, or via your Primary Relationship Manager if you have not already completed registration documents to deal directly with Customer Treasury Services. Once your order is executed, we will advise you immediately or on the next business day if your order level trades overnight.

Contact us

Forms

Orders take two distinct forms:

Take Profit Order

You give an instruction to the bank to exchange a fixed amount of one currency for another currency should the market reach a specified exchange rate that is more favourable to you than the current rate. Take Profit Orders enable you to take advantage of favourable market moves, but it should be noted that you will not be able to take advantage of any favourable exchange rate moves (should they arise) beyond your specified order level.

Stop Loss Order

You give an instruction to the bank to exchange a fixed amount of one currency for another currency should the market reach a specified exchange rate that is less favourable to you than the current rate. This limits the degree to which you are impacted in the event of an adverse move in the exchange rate.

You can also combine both a Take Profit Order and a Stop Loss order, by leaving both at the same time for the same amount. This provides you with both protection in the event of an adverse market move, and opportunity in the event of a favourable market move. Usually these are left on a “One Cancels Other” (OCO) basis which means that the second one is automatically cancelled as soon as one of the ordered rates trades in the market.

Key Features
- Available in all major currencies
- Can be tailored to suit specific amounts and dates
- Documentation may need to be completed and eligibility criteria may apply
- Can be cancelled at any time during Customer Treasury Services normal business hours (8:00am to 5:30pm), prior to your ordered rate being achieved
- Irrevocable as soon as the rate has been booked in accordance with your Order instructions** (which could be outside normal working hours)
- No upfront premium
- Cannot be used for cash (foreign currency note) transactions

*It is important to be aware that all Orders are taken on a best efforts basis. This means that in certain times of extreme market volatility, triggered by events such as market news, economic data releases etc., making an order at a specific price impossible to execute due to the price movement in that currency. Volatile markets can frequently lead to price gaps making a specific rate impossible to achieve. Should these circumstances arise, we will execute your Stop Loss order at the next best available market price. Equally your Take Profit order may not be filled at all in similar market conditions.

**Should you decide to cancel an FX Order after the rate has traded and we have booked it for you in accordance with your original instructions (for example, in the event that the underlying transaction will not be completed), you will transact an equal and opposite transaction in order to reverse the agreed exchange. It is likely that this will not be at the same exchange rate as your original ordered rate, and therefore a break cost or break gain will result. Break costs can be significant depending on market volatility and therefore you should not leave an FX Order unless you are committed to the underlying transaction.

Talk to us

This information is intended as an introduction to this product. We offer a range of products to manage Foreign Exchange risk, including more structured products which can be tailored to address your specific requirements. Please contact us and we will be happy to discuss all of these with you, including the benefits and potential risks associated with each product. You may also wish to consider the following:

Spot Foreign Exchange

Forward Contract