Market orders are the “buy now, transfer later” option, and they'll let you send a future money transfer at your ideal exchange rate.
April 27, 2020 — 3 min read
Last week, we explored the wonderful world of forward contracts. And for those of you who wanted to take advantage of a potentially favorable current exchange rate but didn’t need to make a money transfer right away, forward contracts could have been the answer to your transfer troubles.
But what happens if you want to make a future transfer, and the rates aren’t in your favor? Are you left with no option but to just sit tight and hope that the markets eventually move towards the rate that you want?
Don’t worry, that’s not your only option. Instead, you can set up a market order that will allow you to target your ideal rate.
Remember how we described forward contracts as the “buy now, pay later” transfer option? Market orders would be the “buy now, transfer later” option.
When you make a market order, you can specify your target rate at which you’d like to exchange your currencies. The current rate doesn’t matter: the markets are constantly moving, and you’ll never know when your desired rate will be live.
After you’ve placed your market order and set your target rate, your work is done, and now it’s up to the markets. Once your rate is live, your money transfer will send, allowing you to transfer currency at your ideal rate.
If you’ve set up a rate alert before, you might think that this sounds a little familiar. And it’s true: both rate alerts and market orders are tools that can help you improve the efficacy of your future money transfers. The difference is all in their names.
A rate alert is an alert letting you know that it could be time for a transfer. It informs you that the rates are in your favor, but it’s up to you whether you want to make a transfer at this time. If you regularly make transfers (for purposes like sending money to an account in another country or loved ones abroad), rate alerts will let you know when the best time to do so is.
A market order places an order for a future transfer. You’ll enter your currencies, amount to transfer, and desired exchange rate, and the transfer will initiate once the rate is live.
Depending on the currencies you want to transfer and what’s going on in the world at the time, your currencies could be subject to quite a bit of volatility. If you’re contending with frequent market motion, setting up a market order can help you to ensure that you’ll be able to make your transfer at the best possible rate, whenever that may be.
Market orders are also a great option for transfers that aren’t time-sensitive. Some transfers (such as bills or educational payments) need to be made by a certain date, but if your transfer doesn’t come with its own hard deadline, you can take advantage of market orders to make the most of your money in your transfer.
Ready to set up a market order? It’s no more complicated than sending any other money transfer. If you don’t have an account, take just a few minutes and sign up for your free account first. If you’re already registered, visit our Money Transfers page to learn more about how you can get started.