Case Studies
Spot Contract
Mr Berryford purchased a property in Spain recently. The property is costing them €200,000. When approaching the bank, Mr Berryford was offered an exchange rate of 1.10.
Mr Berryford then contacted Currencies 4 You. Currencies 4 You were able to offer a much more favourable exchange rate of 1.14 saving £6,380.
Forward Contract
Mr Malik recently purchased from a new development in France for €300,000. The property is not due to completed for another 4 months. Mr Malik understands that the Euro is at a current high, and knows that the rate will most likely not hit this level again, so enters into a forward contract at 1.15 to buy €300,000.
4 months down the line, the Euro rate drops to 1.09, but thankfully, Mr Malik secured the rate of 1.15 meaning savings of £ 14,459.
Regular Payments
Mrs Roberts is an old age pensioner who is currently living in Portugal. Mrs Roberts needs her pension sent from England to Portugal on a monthly basis, as she needs the money to live. By using her bank, she is getting very poor exchange rate, and it also take around 7 days for the funds to arrive in her account in Portugal.
When Mrs Roberts came to Currencies 4 You, she found that the process became a whole lot simpler. She transferred the money to Currencies 4 You using a standing order, making it an automatic process. So as soon as the funds arrived with C4U, they would be converted at a great exchange rate, and sent straight to her account in Portugal within a day. This saved Mrs Roberts around £1000 yearly.
Stop Loss Order
Mr Bates was importing an item from abroad which cost him $50,000. The current rate for this was at 1.63. At this exchange rate, this would have cost Mr Bates £30,674. Mr Bates believed that the rate would go in his favour, and he knew he could afford to pay a couple of hundred extra, in hope that the rate would improve. Mr Bates wanted to limit the cost to £31,000, and hope that the rate would improve, and hopefully cost him less than the original £30,674.
Mr Bates initiated a stop loss order with Currencies for you to buy $50,000 at an exchange rate of 1.6129, thus limiting his loss to £31,000. So, if Mr Bates is right, and the exchange rate does favour him, then his item will be cheaper than anticipated, if not, and the rate goes against him, the most he will be paying is the £31,000.
Limit Order
Miss Mounya is planning to send over €10,000 to her brother in Germany for his wedding. She sees that the Euro is currently at the 1.15 mark, but still knows there is a while till the wedding date, and would love to achieve a better rate of around 1.20, so that it costs her less.
Miss Mounya informs Currencies 4 You of her plans, so C4U put in a limit order for €10,000 for when the rate reaches 1.20. So if the rate does jumped to 1.20, that will automatically be bought in at that rate.
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