Market Orders, Stop Loss & Limit Orders

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What are
Market Orders?

Market orders allow you to target specific exchange rates which are not currently available, making them the perfect choice if you are not in a rush to make a transfer. Market orders are available as:

  • limit orders: where you can nominate a target exchange rate
  • stop loss orders: where you nominate a minimum exchange rate

For limit orders, nominating a target exchange rate means that if your target rate is met in future, you will be able to complete a transfer at a positive exchange rate compared to what current market rate allows for.

To minimise the risk when using market orders, foreign exchange specialists like NewbridgeFX use different types of market orders to target exchange rates and secure the best deals.

Market Orders: Target an Exchange Rate

Market orders in the form of limit orders and stop-loss orders allow you to target a maximum and minimum exchange rate. If either of these two is reached in a set period of time, your money is automatically exchanged. This allows you to benefit from a higher exchange rate if it rises, but prevents you from losing significantly more money if the market were to take a downturn.

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Market Order Options:
Stop Loss Orders vs Limit Orders

Speak to a specialist at NewbridgeFX to discuss the Market Order options available to you.

What is a Limit Order?

A limit order allows you to nominate a desired exchange rate. If the market reaches it, you are able to secure the transfer at a more favourable rate. The limit order is entered into a system and exchange rates monitored. Therefore, if the desired exchange rate is met at a future date, the transfer is processed.

What is a Stop Loss Order?

Stop-loss orders prevent you from losing out should the markets take a downturn. These are effectively the opposite of limit orders. You can secure a minimum rate you are willing to go to. If the market falls below that rate, you can still secure the transfer at the set rate to a specified level. This helps avoid any further declines and minimise losses.

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Market Orders:

Limit Order Examples

An electrical supplier anticipates a large stock purchase in 6 months’ time and wishes to exchange $250,000. The current exchange rate from USD to GBP is low at 0.725.

To prevent a significant loss, the company takes out a limit order with NewbridgeFX to exchange at a higher rate of 0.835 within 6 months.

The exchange rate increases within 4 months at which point their funds are automatically converted saving the company over $32,000.

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Stop Loss Order Example

A retired couple wishes to repatriate their saving of £500,000 from the UK to the USA. They want to get the best rate for the conversion, so they have taken out a Limit Order at 1.225, as well as a Stop Loss Order at an exchange rate of 1.125.

Suppose the exchange rate declined. However, the Stop Loss order automatically exchanged their money for $562,500 before it lowered significantly more. Had they exchanged their money 2 months later, they would have exchanged for $525,000, which is $37,500 less they would have received.

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Risk Management:
Market Orders

Using Market Orders to Manage Exchange Rate Risk.

Market orders are a useful tool to manage exchange rate risk. It is common for limit orders and stop loss orders to combine and form part of a currency risk management strategy, alongside spot contracts and forward contracts. For example:

  • 40% of the USD value purchased as a forward contract at a rate of 1.30
  • 40% of the USD value set as a limit order to buy USD at a rate of 1.33. This includes a stop loss order to buy USD at 1.25 to protect the downside should the USD strengthen against the GBP
  • 20% of the USD value to buy at the spot rate in 12 months’ time when the payment is due to the supplier

While this is a basic example, it demonstrates how the company has secured 40% of the USD value required to buy at a rate of 1.30. They have the potential to buy another 40% should the market move in their favour and reach 1.33, whilst protecting against a sharp downturn. Lastly, they secure 20% of the value at the spot rate in 12 months’ time.

Once the market orders are set, there is no obligation on the company to fulfil the orders as long as the target rate is still outstanding. This means they can alter the exchange rate targets as time goes by.

In the above example, should the rate continue to increase to 1.35, the 40% market order would have executed. Furthermore, another order for the remaining 20% value can be set to take advantage of rates continuing to strengthen.

NewbridgeFX can help you to set and amend your risk management strategy to help you mitigate risk whilst maximising returns.


Market Orders


Market orders are instructions to a specialist foreign exchange broker, such as NewbridgeFX, to buy or sell currencies at a specific exchange rate that is not yet available in the market. Market order types are either Limit Orders or Stop Loss Orders.


Limit orders are an instruction to buy or sell currencies at an exchange rate above the current market levels. These are useful if you want to achieve a higher exchange rate in the future, should the exchange rate strengthen.


Stop loss orders are an instruction to buy or sell currencies at an exchange rate below the current market levels. These are useful if you want to protect yourself against a downturn in the currency markets, or budget for the minimum exchange rate you would want to achieve to secure more certainty in your transfer.


By setting a Market Order it is possible to secure a target exchange rate in the future, which allows for better budgeting. NewbridgeFX will monitor the currency markets on your behalf and execute the transaction, should the exchange rate be achieved. This allows you to focus on your business, without having to check the exchange rates on a daily basis.


Market Orders are not guaranteed. NewbridgeFX will monitor the markets and execute should the target exchange rate be achieved. However, if the market does not reach the levels set then, the market order will remain outstanding. Should this be the case, and the time has come to book a transaction anyway, you would have to book at the Spot Rate on the day which could offer a lower exchange rate than your target.

Manage Risk

NewbridgeFX offers a specialist service in the deliverable foreign exchange market, promoting a range of products and services, available online or over the phone. Our products have been designed to meet the needs of our clients. A lot of these products are ways for businesses, and individuals, to manage and mitigate currency risk, and are used frequently during times of increased volatility. Alongside up to date market news, which works in tandem with our range of products. 

Spot Contract

Lock in an exchange rate for immediate onward settlement. Funds can be received the same day.

Forward Contract

Lock in an exchange rate today, but for settlement at a later date that suits you, up to 12 months in the future.

Market Order

We monitor the markets real time and take action to trade between currencies when your desired rate is achieved.

Rate Alerts

Set an alert for phone or email notification when a rate has been achieved to take advantage at the best time.


We strive to earn the loyalty of our clients by consistently delivering a dedicated, professional foreign exchange service, and focusing on providing a great client experience. We have a vast and varied client portfolio. Our experience and expertise in managing international payments applies across a wide range of industries, from accountants to warehouses. 


If you’re looking for an easy and cost effective way to make international payments, this is who you should be using. I’m pleased to say they have saved me, my friends and family money month on month. Someone is always available to talk to and I am kept updated


Having worked with them for sometime now, I’m happy to say they have consistently demonstrated a personal and dedicated level of service above and beyond that offered by my bank and previous provider. Its refreshing to work with a company that really cares about their client. Always recommending to anyone with an FX exposure.

A. Lee


Amazing service, every occasion my funds have arrived on or before the date quoted. They also notify me of market movements which effect my bottom line along with educating me on why the markets react. We currently make a large volume of payments and I have tried a few other providers and nothing compares to the professionalism they offer and I need for my business.

O. Long


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