Jargon Buster

Financial speak leaving you baffled? Let us clarify some of the common terms you’ll come across when talking about foreign exchange

ACH: Automated Clearing House is an electronic payment network for completing financial transactions in the US.

BACS: Bankers Automated Clearing Services – the process for Sterling clearing for domestic banks. Usually takes 3 business days.

CHAPS: Clearing House Automated Payment System – a faster means of making payments. Usually occurs on the same day.

Currency Drawdown: this occurs when bought funds are required sooner than the settlement or value date and can incur a fee.

Currency Exchange (or foreign exchange): A business that allows customers to exchange one currency for another currency.

Currency Roll: this occurs when funds due to on the settlement date fail to arrive so the trade is “rolled” to the next business day and can incur a fee.

Exchange Rate: The price of a nation’s currency in terms of another currency.

Exposure: The amount of money at risk due to Foreign Exchange movements.

Faster Payments: A new process when UK banks will transfer funds on the same day for amounts up to £10,000.00.

Forward Points: The difference between the spot rate and the forward rate.

Forward Contract: A contract to exchange a specific amount of one currency for another on a future date at a predetermined rate. A deposit is normally required for forward contracts.

GTC – Good til Cancelled: A GTC foreign exchange order will be left in the market until executed or cancelled by you.

GTE – Good til Expiry: A GTE foreign exchange order will run in the market until it is executed or expires at a specific time and date.

Hedge: Protection against future currency movements.

Indirect Quote: A currency quotation in the foreign exchange markets that expresses the amount of foreign currency required to buy or sell one unit of the domestic currency.

Local Payments: A slower method of making payments (1-3 days) via local payment networks such as BACS, SEPA or ACH. Whilst a slower method, it avoids any intermediary or routing bank fees so the full amount sent will always arrive with the beneficiary.

Market Order: You can leave an “order” with us to transact on your behalf if a particular exchange rate is reached.

OCO – “One Cancels Other”: A combination of a ‘Stop Loss’ order and a ‘Take Profit’ order. When one of these two orders is executed, the other order is automatically cancelled.

SEPA: Single European Payments Area is an EU wide simplification of bank transfers made in Euros aimed to reduce costs and improve efficiency. It is an alternative to a SWIFT payment.

Settlement Date: is the date that we require to receive the sold funds to complete a currency trade.

Spot Rate: The foreign exchange rate at which two currencies can be exchanged in 2 days time.

Spot Transaction: The exchange of one currency for another at a specified rate for settlement in 2 working days.

Spread: The difference between the bid and the ask price of a security or asset.

Stop Loss Order: A stop loss order is a means of limiting your risk from adverse exchange rates. A currency level is set. If that currency level is reached, the trade is automatically executed in the market. The currency level used for a stop loss order is always worse than the current market price. This is a way to protect yourself from adverse changes in exchange rates without needing to constantly monitor the rate.

Value Date: The date for the exchange of payments.

OUR APPROACH

No fees, no costs...

...no minimum transfer amount for private and corporate clients

Stringent security settings

We named our company after it; S (secure) A (accurate) T (timely) Foreign Xchange. Client funds are held in segregated client bank accounts. Authorised by the Financial Conduct Authority (FRN 591774) and licensed and regulated by HMRC as a Money Services Business License Number 12251701. Monthly bank audits. Comprehensive compliance procedure

Personal account manager assigned as standard

We believe continuity results in efficiency

Free no obligation trade analysis

For all new corporate clients! Identify how we can save you money and agree transparent spreads before trading

Free phone/ email user support

For all SATFX trading platforms (Mon – Fri 9am – 5.30pm) plus free training should you/ your team require it

We pay any onward fees to transfer outstanding funds held with SATFX

If we don’t deliver on requirements and you decide to complete your currency transfer elsewhere

Receive our ‘small team’ customer service ethos

A personable approach described by clients as ‘a unique service rarely found in a profit motivated world’.

No jargon

We keep it simple. Tell us if we bombard you with jargon and we donate £5 to the charity – lendwithcare.org