A limit order lets you set the rate at which you want to exchange your money from one currency to another. If that rate becomes available, the exchange will occur automatically.
With a limit order in place, you won’t need to monitor the market – you can sit back and wait for the trade to happen.
Why set a limit order?
A limit order can be useful if you want to get a certain amount for your money and don’t need the transaction to happen straight away.
For example, you might want to exchange British pounds (GBP) into US dollars (USD). Let’s say the current market rate for GBP/USD is 1.24 (GBP1,000 buys USD1,240), but you think it may increase. You could place a GBP/USD limit order of 1.3 (GBP1,000 buys USD1,300), for example. If the rate became available, the order would be placed automatically.
While you won’t know when the trade will happen, a limit order can save you having to monitor rates, or settle for a rate you’re not happy with. Whether you’re making one-off or regular transfers, limit orders can give you more control of how much money you’ll end up with and make you less susceptible to market fluctuations.
How do you set a limit order?
If you’re an HSBC customer and you’ve downloaded and registered for the Expat FX app, it’s easy to set a limit order.
To set your limit order:
- Log on and choose the crediting account and then select limit order.
- Select ‘Set your rate’.
- Select ‘Create limit order’, followed by the debiting and crediting account.
- Choose the amount to exchange and the rate.
- Select ‘Continue’.
- Select how you’d like to be contacted when the order is completed and select continue.
- Set your limit order by sliding the ‘Slide to set’ bar at the bottom of the page.
You can choose a rate up to 10% above the current market level.
If you’re unsure what price to set the rate at for your limit order, you could use the market research options in the app to help decide. You can also tell us the amount you’d like to receive for your money and we’ll work out the target exchange rate for you.
How long does a limit order last?
Limit orders placed on the HSBC Expat FX app last 3 months and you’ll get an SMS or email notification when they expire. If it does expire, you can go back into the app and place a new one.
Which currencies can you place limit orders for?
With the HSBC Expat FX app, you can place limit orders in 11 currencies:
What to consider when placing limit orders
While there are benefits to limit orders, there are also some considerations. Here are a few of each:
- Get the exchange rate you want
- Useful if you don’t need to make an immediate transaction
- You won’t need to monitor the market
- You can cancel a limit order free of charge if the target rate hasn’t been met
- You don’t know if the trade will take place
- Limit order will expire after 3 months
- Limit orders are capped at 10% above the current market rate
- You may be limiting the amount you’ll receive from your transfer if the rate continues to go up
If you want to monitor the market for a specific rate, but don’t want to commit to a transaction, you could use the Price Alert function in the app.
It works in a similar way to a limit order, but we’ll notify you when the rate you want becomes available without making the trade. You can then go into the app and make the transaction if you want to.
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