Contract Types

We refer to a currency transfer as a currency "contract". A contract is simply an agreement to buy or sell currency.

1. Spot contract
   
   Spot contracts are ideal if you have all of your funds available and want to make a fast transfer. You can buy or sell currency for immediate delivery, and benefit from our excellent exchange rates. The "spot" price is the live rate that is available in the interbank currency market.
   
2. Forward contract
   
   Forward contracts allow you to fix your exchange rate for a future trade, even if you don’t have all of your funds ready. This option allows you to take advantage of favourable exchange rates up to 2 years before you actually need to send your currency. You can buy the currency now, and pay later. A 10% deposit is payable at the outset, followed by 90% when the contract matures. This option is ideal if you are in the process of purchasing an overseas property. Once you have agreed the purchase price it’s important to remember that the cost in Sterling can still rise if the exchange rate moves against you. By fixing your exchange rate using a forward contract you remove this risk and protect yourself from any fall in the value of Sterling.
   
3. Regular Payments Contract
   
   Ideal for sending a regular fixed amount for monthly payment of overseas expenses with minimal hassle and expense. Simply set up a standing order and let dVFX do the rest. They buy the currency each month and send it to your nominated account.

Order Types

Exchange rates fluctuate constantly and can be difficult to predict, so as well as simply buying at the current rate, dVFX offers the following order types to help you make the most from your transaction. This is particularly relevant to clients who have a strong view on future exchange rates.

1. Buy Now
   
   This is the simplest and most commonly used order type. This means you simply decide when you want to buy or sell currency, and call your dVFX Trader to make the transaction.
   
2. Limit Order
   
   A limit order is an order that you leave with your dVFX Trader to buy your currency at a pre-determined market level (i.e. better than the current rate). dVFX Traders monitor your order 24/7 and your currency is purchased automatically when your target level is achieved.
   
3. Stop Loss Order
   
   A stop loss order allows you to set a minimum rate at which to buy your currency. This would effectively be your worst acceptable exchange rate. If the market falls to this rate, your currency will be purchased automatically. This gives you peace of mind that if you are holding out for an improvement in the exchange rate, you are also protected from a dramatic deterioration in the exchange rate.
   
   Some clients use a limit order and stop loss order together, protecting against risk while hoping to achieve a better rate than is currently available. Whichever level is reached first will be the level that your transaction is completed at. This strategy guarantees that the exchange will be made within a certain price range, helping you to budget in advance. The markets are constantly moving, so our traders will monitor your orders and keep you informed. Orders can be adjusted or cancelled at your instruction at any time prior to being fulfilled.
   
   You will not be asked for payment until your order has been fulfilled (with the exception of some exotic currencies for which dVFX require payment in advance).