Phil Weisberg CEO of FXall
Phil Weisberg CEO of FXall

Volatility’s impact on e-FX : What’s the Upside?

Market conditions have changed due to unprecedented volatility, and foreign exchange as an asset class, while continuing to grow, has been impacted nonetheless. With volatility breaking through normal trading ranges, FX market participants are adapting to a new paradigm as old models and assumptions can no longer be relied upon.

First Published: e-Forex Magazine 35 / Leader / April, 2009

New approaches are needed to be successful in this new environment and we’ve noticed five key developments that can create opportunities for smart players:   Applying flexible execution strategies dynamically Leveraging bank relationships Understanding new risk models  Using automation and straight through processing Selecting the right tools Opportunities from Volatility require diverse Execution Strategies In today's higher volatility environment, it remains more critical than ever for active traders to be equipped with the right tools to manage their trading strategies so they can choose when, where and how their executions are handled.  E-dealing platforms where investors can execute multiple strategies through one interface can be an extremely effective way to remain nimble and respond to quickly changing market conditions.  Understanding the alternatives available – either adding liquidity to the broader market or leaving a position for your bank to work...continued

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