Feb 20, 2025 ArticlesMarket Watches

What are market watch orders?

In today's globalized economy, businesses often face the complexities of managing multiple currencies. Whether it's paying international suppliers, receiving payments from overseas clients, or hedging against currency risk, efficient currency management is crucial. If your business needs to exchange currencies at specific rates but you lack the resources to constantly monitor the market, a "market watch order" with your currency broker could be the solution.

What is a market watch order?

A market watch order is a request you make to your currency broker to monitor a specific exchange rate and execute a transaction on your behalf when that rate is met. It allows you to set a target exchange rate and automate the execution of your currency exchange, saving time and resources.

Why use a market watch order for your business?

Time Savings. Free yourself from constantly monitoring exchange rates, allowing you to focus on other critical business tasks.
Improved Rate Management. Pre-define your target exchange rate and automate execution to potentially secure better rates and save money.
Risk Mitigation. Set triggers for hedging strategies to help mitigate currency risk.
Operational Efficiency. Streamline routine currency exchanges, improving efficiency and reducing the risk of manual errors.

Like a cat hunting a mouse, your broker will monitor the market waiting for the right time to pounce and catch the desired exchange rate for you.

Show me an example...

Your business needs to pay a European supplier €50,000. You believe the EUR/USD rate will soon reach a favorable level. You submit a market watch order:

Currency Pair	EUR/USD
Target Rate	1.1200
Amount to Buy (or Sell)	50,000 EUR
Duration (or Expiry)	Good 'til cancelled

Your broker monitors the EUR/USD rate. When it reaches 1.1200, they automatically execute the exchange, purchasing €50,000 for you at the desired rate.

How does Flowbrite fit into all of this?

That’s easy, Flowbrite offers market watch orders!

This can either be an automatic purchase on your behalf, or if you just want us to contact you when your desired/target rate is available we can also do this. Placing a market watch order is really simple. All you need to do is to decide on your target rate and then contact your account manager.

Market watch orders can be a valuable tool for businesses managing currency exchange. By leveraging this service, you can optimize your currency management, secure favorable rates, and streamline your financial operations.

If you think this is something that could help you or your business, please get in touch to discuss it with one of the team.

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