Steve Bird and Damien McAdam Steve Bird and Damien McAdam of Stentra, the specialist eTrading technology consultancy, examine user needs and technology challenges in the market.
Steve Bird and Damien McAdam Steve Bird and Damien McAdam of Stentra, the specialist eTrading technology consultancy, examine user needs and technology challenges in the market.

Real-time FX trading: Fact or fantasy?

Steve Bird and Damien McAdam look at how real-time FX trading is currently defined and examine how close we actually are to achieving it.

First Published: e-Forex Magazine 29 / The e-Forex Surgery / October, 2007

What is currently defined by a real-time FX trading environment? Real-time in an FX trading environment means different things to different people. For the buy side, it can mean being able to trade electronically via a broker or direct with an ECN (Electronic Communication Network) whenever need be. This can be for covering FX exposure or moving FX risk from one currency to another. For the sell side, real-time will mean much more than simply being able to execute a single trade immediately; it might mean connecting to multiple liquidity sources to take advantage of arbitrage opportunities, being able to execute complex algorithms, high speed credit checking, risk management and being able to offer clients STP (Straight Through Processing) to ECN’s. What are different timeframes in which clients need to execute their trades? Timeframes for completing a transaction (a transaction being generating one or a set of quotes/orders or trades) to meet a specific trading objective are clearly going to be...continued

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