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.
How does a limit order work?
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 – making you less susceptible to market fluctuations.
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). If the rate became available, the order would be placed automatically.
You won’t know when the trade will happen. However, a limit order can save you having to monitor rates, or settle for a rate you’re not happy with.
Explore more: What makes exchange rates move?
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.
Not sure what rate to set your limit order at? The market research options in the app can help you 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. You’ll receive 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
There are benefits and things to consider when it comes to limit orders. 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
|Get the exchange rate you want
||You don’t know if the trade will take place
|Useful if you don’t need to make an immediate transaction
||Limit order will expire after 3 months
|You won’t need to monitor the market
||Limit orders are capped at 10% above the current market rate
|You can cancel a limit order free of charge if the target rate hasn’t been met
||You may be limiting the amount you’ll receive from your transfer if the rate continues to go up
Get the exchange rate you want
You don’t know if the trade will take place
Useful if you don’t need to make an immediate transaction
Limit order will expire after 3 months
You won’t need to monitor the market
Limit orders are capped at 10% above the current market rate
You can cancel a limit order free of charge if the target rate hasn’t been met
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.
Price alerts work in a similar way to a limit order, but without making the trade. Instead, we’ll notify you when the rate you want becomes available.
You can then go into the app and make the transaction if you want to.
New to HSBC Expat?
To benefit from our Foreign Exchange services you’ll need to become an HSBC Expat customer.
From multi-currency savings accounts to our FX app, discover all the reasons to bank with us and open your Expat account today.