Muhammad Al-Amin Rasoul Chief Operating Officer at Global Forex Trading
Muhammad Al-Amin Rasoul Chief Operating Officer at Global Forex Trading

The rise of FX Model Systems Trading

The rise of FX Model Systems Trading

First Published: e-Forex Magazine 16 / Retail Forex Client / October, 2004

The FX market comprises buy-side and sell-side participants. Traditional buy-side players include corporations, hedge funds, CTAs and occasionally high net-worth speculators. In the late 90's, however, the FX market started to expand into the retail market, and with it, came a large wave of retail speculators. Compared to institutional traders, retail speculators have different needs, expectations and levels of knowledge about foreign exchange. While retail FX will continue to grow, the demand to accommodate all retail participants will cause the market to evolve into subsets that make up the larger whole. One of the newest emerging sectors of the retail FX market is systems trading. Systems trading, model trading, automated trading systems, which are all names that have matured from the traditional buy-side FX business, are non-discretionary trading methods applied to the foreign exchange market place. While systems offer the benefit of bringing new participants to FX, they also are creating an influx of...continued

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