5th of November 2012. When buying a property overseas, the price of the property will fluctuate as the exchange rate moves up and down. Over the last 3 months we’ve seen nearly an 8% movement in EUR/USD rates and a 4% movement in GBP/EUR. To put this into perspective, a €1,500,000 luxury property would have cost $135,000 more on the 19th October than if it had been bought towards the end of July.
If you are working to a tight budget, wild swings in exchange rates can disrupt your plans. So, how can you protect yourself from movements in the foreign exchange markets? Currency brokers offer various tools and contracts to protect you from adverse movements in the markets and to help ensure you are maximising the return on your currency.
Stop Loss, Limit Orders and Forward Contracts are all useful tools to limit exposure to market volatility. To discuss the various types of contracts in further detail, contact James Baxter at the Foremost Currency Group for a free, no obligation consultation on +441442 892 062. Alternatively, send an email to jsb@fcgworld.co.uk.