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 happen automatically. You can set an expiry date for your limit order, which can be up to 3 months in the future. The minimum transaction amount for a limit order is GBP1 to a maximum of GBP2,000,000 or equivalent.
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?
If you're an HSBC customer and you've got the mobile banking app it's easy to set a limit order.
Limit orders placed on the mobile banking 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.
You can place limit orders in 11 currencies within the 'Foreign exchange' option on your mobile banking app.
There are benefits and things to consider when it comes to limit orders. Here are a few of each:
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.
To benefit from our Foreign Exchange services you'll need to become an HSBC Expat customer.
From our Global Money account to our mobile FX services, discover all the reasons to bank with us and open your Expat account today.
