Case study

Limit Order example

Jim's story

Jim was planning to buy a retirement property overseas. He contacted us to help him choose the best foreign exchange solution for converting his deposit from sterling (GBP) into euros (EUR).

Name: Jim Peters

Age: 61

Profession: Company director

Country of origin: UK

Planning to retire to: Spain

This is a fictitious case study based on a typical foreign exchange transfer.

Jim was planning to retire a few years early and wanted to buy a retirement property in Grenada. He'd sold one of his properties in the UK and had a deposit of GBP 1,200,000 for his new home in Spain. At the time the exchange rate was 0.8765. Because he didn't have to convert his money straight away, Jim wondered if he should wait to see if he could get more euros for his money. He was aware that the rate might move in the other direction, but his busy schedule meant he didn't have time to keep an eye on the markets.

How we helped Jim

We arranged a limit order that enabled Jim to buy euros when the exchange rate reached a level he was happy with - so he could get the best possible rate. We also arranged a second limit order that would prevent Jim from losing money if the rate moved in the opposite direction.

Getting the best exchange rate

We arranged a limit order for Jim to ‘Take a profit’ at a rate of 0.8630. If this rate was reached, Jim's GBP 1,200,000 would automatically be exchanged into euros.

Preventing a loss

We also arranged a limit order to ‘Stop a loss’ for Jim at a rate of 0.8850. If this rate was reached, the GBP 1,200,000 would automatically be exchanged into euros.

The bottom line

By arranging the limit orders, Jim knew the maximum and minimum amounts he would receive in the transfer. If the exchange was made at a rate of 0.8630, Jim's GBP 1,200,000 would be converted into EUR 1,390,498.20. If the exchange was made at a rate of 0.8850, his money would be worth EUR 1,355,932.20.

This is a fictitious case study based on a typical foreign exchange transfer.

Call us to place a Limit Order

Our team of foreign exchange specialists are available Monday to Friday, except public holidays, between 7.30 am and 5.00 pm (UK time).

Call us now: +44 1534 616 162


Call us now:

+44 1534 616 162

Please have your 10 digit PBN and six digit PIN to hand before you call.
Calls may be monitored and/or recorded for security and service improvement purposes.

New to HSBC Expat?

To convert your money with us, you first have to open an HSBC Expat account.

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You should be aware of the potential risk of foreign exchange rates changing. So if you convert your money back to the original currency, you may incur a loss as a result of movements in the markets.