Key takeaways
- Don’t try to predict rates; set rules instead.
- Limit orders convert automatically at your target.
- Forwards lock today’s rate for a known payment.
- Staged conversions smooth out ups and downs.
Four ways to manage timing
| Tool | How it works | Best for |
|---|---|---|
| Limit order | Converts automatically if the rate reaches your target | Payments with flexible timing |
| Forward contract | Locks today’s rate for a future date | Known payments with fixed dates |
| Staged conversions | Converts in equal parts over weeks or months | Large amounts you can spread out |
| Rate alert | Tells you when a rate reaches your target | Deciding when to convert yourself |
A worked example
A business needs US$300,000 over the next three months. Instead of converting everything on one day, it converts US$100,000 a month, sets a limit order for a better target on part of it, and uses a forward for a fixed-date supplier payment. Its average rate is less exposed to any single day’s move.
Set up rate alerts
Treasi members can set rate alerts for pairs such as CAD/USD or USD/CAD and get notified when a target is reached, in their dashboard and by email if they choose.
Common mistakes
- Waiting for a better rate on a payment with a fixed deadline.
- Converting everything in one go during a volatile week.
- Setting targets with no back-up plan if they’re never reached.
Providers that can help
Compare these providers, then request a free, no-obligation quote.
Limit orders, forwards and options
Forwards & options Hedging
Low-cost conversions when you’re ready
From 0.48% Conversion feeFAQs
Can I predict the best time to convert currency?
No one can reliably predict exchange rates. Tools such as limit orders, forwards, staged conversions and rate alerts help you manage timing without guessing.
What is a limit order in FX?
An instruction to convert automatically if the exchange rate reaches a target you set. Providers such as Corpay offer limit orders.
What are staged conversions?
Converting a large amount in smaller parts over time, so your average rate isn’t tied to a single day.
How do I get alerted when a rate hits my target?
Set a rate alert, for example in your Treasi dashboard, for the currency pair and target you want.
Sources: FX providers’ published product information; Bank of Canada daily exchange rates.