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Wealth-Auto

Manage your currency risk with our innovative tools

It is easy to manage your currency risk using a few simple tools and instruments we can offer you. We have the in-house expertise to tailor the appropriate currency risk management solution for you or your business - helping you protect your profits, reduce your costs and streamline your international payments.

We will help identify, evaluate and mitigate the day-to-day currency risks you face, while giving you the tools to take advantage of the associated opportunities.

How we can help you

Market orders

Limit orders 

A limit order provides an upside price target. You set a price target above where the market is currently trading; when the market hits your price, your order is automatically filled.

Stop-loss orders

A stop-loss order does exactly that – it stops loss. It allows you to set a "worst case" price to trade at below the current market level. Your order will be filled if the market drops to (or beyond) your protective price.

OCO orders

An OCO order ("One Cancels the Other") allows you to set an upper and lower price range. The moment that your upper or lower price target is hit, your order will be filled at that price and the other price target is immediately cancelled. Market orders can be used to trigger either a spot order or a forward contract.

Hedging

Forward contracts

A currency forward contract is a non-standardized contract set up between two parties to buy or to sell a currency at a specified future time, at a price agreed upon at the time of contract initiation.

Futures currency hedging

Currency hedging involves the purchasing of a futures contract to minimize the potential currency risk an individual or business may face. This is done by entering a fixed agreement using local exchanges and thus “fixing” the price of a currency at that point in time.

How do forward contracts work?

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Step 1: Determine the future date you would like the currency delivered on.*

forwardContracts_sign

Step 2: Sign the forward contract and pay over the required deposit.

forwardContracts_currency

Step 3: Once the deposit has been received we can secure the exchange rate and book the currency.**

forwardContracts_delivery

Step 4: On date of settlement, the balance must be settled. The currency will be transferred at the agreed forward contract rate.

*This needs to be exact as booking will take place on the live market.

**Deposits needs to be paid in order to cover any risk associated with the currency pair. The deposit is usually between 5-10%.

Want to know more?

 

Contact us

 

South Africa

Regent Square
Doncaster Road
Kenilworth 7708
Cape Town
t: +27 (0) 21 657 2120

United Kingdom

Castlewood House
77/91 New Oxford Street
London
WC1A 1DG
t: +44 (0) 20 7759 7514

Australia

Suite 8.06
9 Yarra Street
South Yarra
Melbourne VIC 3141
t: +613 (0) 86 514 500

Hong Kong

Level 1102
The Lee Gardens
33 Hysan Avenue
Causeway Bay, Hong Kong
t: +852 3959 8681

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