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Forex
Phone Trading
You can trade forex
on the phone via our trading desk toll free number. See
the example below to see what takes place when a currency trader calls
a dealer to place a trade:
- An FX trader
calls the dealing desk on the phone and asks for a two-way quote for
the EUR/USD. The trader says, "I would like a quote for the euro
dollar for 1 lot."
- If the trader
calls the desk frequently and is already well known, the dealer will
likely reply, "82-85." If not, the forex dealer on the phone will
quote the whole figure (known as the "big figure"), "1.1287-90".
The reason why the "big figure" (1.12) is usually not quotes
is because in the forex market, it is normally assumed that traders
already know what the big figure is. The most important part of the
forex quote is part composed of the last two digits, since these are
the ones that change the most in a typical trading day.
- After the forex
trader receive the two-way quote, he has a brief period of time to
decide if he wants to buy or sell at that price, or ask for a re-quote
(another quote). In a market that is moving fast, the FX trader might
only have a few seconds to make up his mind. If he does not accept
the price in a few seconds, the dealer will have to change the quote.
The FX dealer might say, "off" or "change" and
quote a new price (bid and ask) in the market. Consequently, it is
important to have the information below ready before placing an order
over the phone:
- Forex account
number
- Whether you
are buying or selling
- Your order
size (number of lots or contracts)
- The currency
you wish to trade (EUR/USD, USD/JPY, etc.)
- The price
desired (for limit or stop orders)
- The type
of order desired (market order, limit order, stop order, etc.)
- In the previous
example, if the forex trader decides to buy two lots of EUR/USD at
the market price (i.e., using a market order), the dealer will confirm
the trade by stating "I confirm you bought 2 euro at 1.1285."
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