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Re: Forex Trading`



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At 10:45 AM 8/4/99 -0400, JCDuffy@xxxxxxx wrote:
>There might be a couple factual errors in the post below about Fx trading. 
>However while "WarLord" takes quite a critical view of the business, there
is 
>also a large element of truth in most of what he wrote. For the small
trader, 
>you are far better off to stick to the major Chicago exchanges. Retail Fx 
>came about mostly because the margin is evaporating in institutional Fx. You 
>can figure out the rest.  

Let say institutional FX customers has gotten wise to ways of dealers. Some 
have a team to execute a hit of various desks simultaneously. They other side 
will find it hard to offset when that happen. Else they do one side with
the bank, 
get a proxy to company to offset with another bank. And they monitor the
prices 
themselves  

I suspect it is because the bank dealers get jobs with company treasuries or
fund management units. If a fund management unit does not get a ex-treasury
person to do the execution, well, let say I know someone who made the year's
budget make a quote to a institutional fund manager coming from a house
as venerable as the former Barings. Apparently the person heard the strain
in the voice on the other side and decided to try his luck. Yum yum.

On definitive prices, there is no time sales kind of thing except for a pre
agreed
survey price for otc derivative settlements. This kind of definitive prices
does
not apply for the spot trading 

What happens happens, because it is not illegal. If the rules in exchanges
were
the same, you see order fill show their order books to the pit traders for
a kickback.