Archive for July 2010


Welcome to the FX world

July 20th, 2010 — 2:36pm

Foreign Exchange markets dominate the financial landscape, dwarfing all others in terms of nominal volumes transacted. While many investors and traders focus on stocks and bonds, the global capital flows driving those markets will have typically already manifested themselves as flows into or out of the currency in which the targeted asset is denominated and thus analysis of the FX markets should be viewed as a key factor in understanding the activity in these other venues. Historically, investor participation in FX was limited due to the market structure, in that FX was traded between banks, hence the name Interbank Market. Now however, the advent of the portal based model (EBS, Currenex, Hotspot etc) and the subsequent distribution of retail access via the margined forex providers (Oanda, FXCM, SaxoBank, MIG, FXPro, Alpari, GAIN, and many, many others) has opened participation in this asset class to a wider range of investors.

In addition to this structural change, advances in the technology have also contributed to an explosion in participation through fully automated and algorithmic trading, which is a particular area of interest and expertise of mine.

So whatever your particular interest in forex trading, whether as an individual trader or as an institution, this blog is for you.

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