2 Key factors in currency matters

June 5, 2013 No Comments

The currency markets are never boring. They can be wildly volatile, perverse, bizarre or frustratingly flat but they are definitely never boring.

Of course they are much more exciting when the exchange rate is in your favour and your funds stretch that little bit further. Equally, they are totally frustrating when the rate moves in the wrong direction and you are out of pocket. What not enough people know is that you don’t have to be a slave to the markets; you can avoid that sinking feeling you get when the rate slumps on the day you have to transact and it very definitely is possible to control things to fit your needs…within reason.

What I am talking about are two factors; Timing and Strategy. But before you start to yawn or click on to some cute animal clip on YouTube, bear with me because even that doesn’t need to be complicated.


Timing is no more than ensuring you have someone watching your back. If you have nothing better to do, you could watch the markets, read all the reports, decipher the jargon……but what am I saying? You have a life so that is the last thing you want to be doing. A decent broker will watch the market and inform you when you ought to act, sit on your hands or protect yourself. Brokers are the geeks of the financial markets; we don’t have lives.


Strategy sounds like a haughty conceptual kind of thing but it is little more than planning your requirements in light of the market conditions, your personal circumstances and the funds involved. There is no point is hanging on for the very last hundredth of a cent if you are making a £500 transfer and it has to go today whereas, if you are shifting your life savings, a small percentage of gain can be hugely beneficial. Equally, if you are entirely risk averse by nature, you will not be minded to gamble everything on the hope the exchange rate improves. Instead, you might want to consider the most conservative style of currency management using forward contracts to set firm exchange rates or setting a guaranteed safety net exchange rate to guard against the worst excesses of the forex market.

Whichever way you decide to go, I would urge you to think about your currency needs very early ion to ensure you have time to consider timing and strategy and you are not a casualty of a falling Pound.

Article supplied by David Johnson, Director at Halo Financial – International Money Transfer Specialists, visit www.halofinancial.com for more information or drop us a message via help@halofinancial.com

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