Trading Currency Derivatives online

We bring together 4 major players to discuss why derivative trading lends itself to the electronic environment and who stands to gain most from the benefits of electronic trading.

First Published: e-Forex Magazine 12 / e-Forex Roundtable / October, 2003

Peter Rading, Ed Hulina, Michel Everaert, Edwin NelenWhy do you think derivative trading lends itself to the electronic environment?Rading: In recent years spreads at the vanilla end of the FX options market have compressed considerably and transparency has increased. The commoditisation which has resulted has made vanilla FX options more suitable for the electronic environment. This process has already taken place in the spot FX market, and to a lesser extent swaps and bonds, all products which are simple and whose characteristics are widely accepted in the market, making them suitable for electronic trading.Hulina: Loads of reasons. Price discovery takes seconds rather than minutes. The “greeks” are included along with the price. End-users can explore multiple ideas quickly and easily before choosing one. Execution occurs with a single click - not a voice conversation prone to miscommunication. Post-trade “passing details” is eliminated, reducing errors and saving time. Electronic...continued

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