Foreign Exchange  Briefing January 2005
Introduction <ul><li>The forex market is a global network of buyers and sellers of currencies </li></ul><ul><li>Average da...
A Brief History - 1 <ul><li>Between 9000 and 6000 BC cattle (cows, sheep, camels) were used as the first oldest form of mo...
<ul><li>Over the past 30 years or so, nations in the West have experienced </li></ul><ul><ul><li>currency devaluations…rev...
Brief History of FX Trading - 1 <ul><li>The FX market is one of the youngest global capital markets. Supply and demand hav...
Brief History of FX Trading - 2 <ul><li>The US dollar became the key currency in this system. The currencies of the partic...
<ul><li>The forex market provides the liquidity for all market participants to convert their trade and financial flows fro...
Roles Played <ul><li>Market Makers </li></ul><ul><ul><li>known as dealers or traders </li></ul></ul><ul><ul><li>market par...
Purposes <ul><li>Transactions </li></ul><ul><ul><li>commercial…importers / exporters </li></ul></ul><ul><ul><li>funding…co...
Forex Products  <ul><li>Spot trades - the ratio at which one currency is exchanged for another for settlement in two busin...
Regulatory Authorities <ul><li>As there is no central trading exchange for the forex markets, one may wonder how it can be...
What’s on Offer? <ul><li>Wondering what the majors and exotics are? </li></ul><ul><li>Forex trading generally refers to th...
Composition of a Dealing Room <ul><li>Traders – buy and sell in all areas of the financial market </li></ul><ul><li>Fund m...
The Workplace -1
The Workplace - 2 <ul><li>Noise </li></ul><ul><ul><li>a dealing room is open plan  </li></ul></ul><ul><ul><li>constant noi...
Forex Traders  <ul><li>Traders </li></ul><ul><ul><li>buy and sell in all areas of the financial market </li></ul></ul><ul>...
Characteristics of Forex Traders <ul><li>Majority of traders are in their mid 20’s to late 30’s </li></ul><ul><li>Very few...
External Relationships - 1 Counterparty FX Trader Broker Unknown  Counterparty buy and sell directly buy or sell request s...
External Relationships - 2 <ul><li>Counterparty </li></ul><ul><ul><li>will conduct deals with their opposite number in ano...
Relationships with Colleagues - 1 Sales Desk Position Keeper Back Office Economists Analysts Strategists Senior Trader Chi...
Relationships with Colleagues - 2 <ul><li>Chief dealer </li></ul><ul><ul><li>has responsibility for a dealing group </li><...
Relationships with Colleagues - 3 <ul><li>Sales desk </li></ul><ul><ul><li>do not normally communicate directly with trade...
Relationships with Colleagues - 4 <ul><li>Position Keeper </li></ul><ul><ul><li>Keep traders’ positions up to date </li></...
Common Tasks <ul><li>Form an opinion </li></ul><ul><li>Receive analysts’ predictions </li></ul><ul><li>Trade on the market...
Forex Salespeople <ul><li>Their role is to generate business for the institution </li></ul><ul><li>Their aim is to keep in...
Characteristics of Salespeople <ul><li>Personality is definitely the most important characteristic </li></ul><ul><li>Tend ...
Working Relationships Commercial  Banker Back Office Trader Section Head Economists Analysts Strategists Client Salesperson
Working Relationships <ul><li>Client </li></ul><ul><ul><li>can be anything from a corporate treasure to a fund manager to ...
Common Tasks <ul><li>Understand clients’ requirements and constraints </li></ul><ul><li>Answer a client enquiry </li></ul>...
Analysts <ul><li>Analysts research the financial outlook of market sectors and economies </li></ul><ul><li>They make recom...
Characteristics of Analysts <ul><li>Educational background </li></ul><ul><ul><li>tend to be degree-educated </li></ul></ul...
Common Tasks <ul><li>Depends on whether they work on the buy or sell side as they tend tro analyse the same information fo...
Final Remarks <ul><li>Foreign exchange is both a science and an art </li></ul><ul><li>Risks can be quantified and alternat...
 
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FX Presentation 2005

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A Brief Introduction to the Foreign Exchange Market

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FX Presentation 2005

  1. 1. Foreign Exchange Briefing January 2005
  2. 2. Introduction <ul><li>The forex market is a global network of buyers and sellers of currencies </li></ul><ul><li>Average daily forex volume is now $1.88trillion </li></ul><ul><li>In geographical terms </li></ul><ul><ul><li>the UK remains the major centre with 31.3% of daily turnover </li></ul></ul><ul><li>There is no fixed base </li></ul><ul><ul><li>the market exists at the end of a telephone, internet or any other means of communication </li></ul></ul><ul><li>Nor is it limited by fixed trading hours </li></ul><ul><ul><li>the market is truly a 24 hour global trading system </li></ul></ul><ul><li>It knows no barriers with trading activity moving with the sun from one major financial centre to the next – a decentralised marketplace </li></ul>
  3. 3. A Brief History - 1 <ul><li>Between 9000 and 6000 BC cattle (cows, sheep, camels) were used as the first oldest form of money </li></ul><ul><li>The Barter System worked quite well but it was not perfect for it lacked </li></ul><ul><ul><li>convertibility </li></ul></ul><ul><ul><li>portability </li></ul></ul><ul><ul><li>divisibility </li></ul></ul><ul><li>The first paper bank notes appeared in China in 800 AD </li></ul><ul><li>17 th Century coffee houses became the in-meeting place for merchants </li></ul><ul><li>The Gold Standard - Bretton Wood System – Special Drawing Rights - Smithsonian Agreement - The Snake - The EMS and the ERM - The Maastricht Treaty – The Treaty of Rome – The Single Currency </li></ul>
  4. 4. <ul><li>Over the past 30 years or so, nations in the West have experienced </li></ul><ul><ul><li>currency devaluations…revaluations…the abandonment of the dollar / gold convertibility </li></ul></ul><ul><ul><li>oil crisis… crisis of confidence </li></ul></ul><ul><ul><li>exchange controls…snakes in tunnels…baskets </li></ul></ul><ul><ul><li>recycling pressure…and the subsequent Third World debtor nations’ crisis </li></ul></ul><ul><li>However, on the whole, we now live in a world of freely floating exchange rates </li></ul><ul><li>There is a far better understanding of monetary economics on the part of governments </li></ul><ul><li>Much reduced dependence on artificial trade barriers or exchange controls </li></ul><ul><li>And a freedom and speed of international communication, which creates a single global forex market </li></ul>A Brief History - 2
  5. 5. Brief History of FX Trading - 1 <ul><li>The FX market is one of the youngest global capital markets. Supply and demand have driven the price of global currencies only since 1973. From 1876 to 1914, the gold standard constituted the base of the currency system. Each country could not circulate more money than was backed by its gold reserves. If, for example, the gold reserve of Britain were twice as high as those of France, the pound was worth twice as much as the franc. </li></ul><ul><li>From the beginning of the First World War in 1914, the involved countries were in need of more money to finance the war. The gold standard was temporarily suspended until the end of the war. However, it was never again reintroduced. The hefty inflation of the 1920’s was due in part of the lack of the gold standard. </li></ul><ul><li>Shortly before the end of the Second World War, the western allies met for the Bretton Woods conference. Out of this conference, the allies founded the World Bank, the International Monetary Fund (IMF) and the introduction of a new currency system. </li></ul>
  6. 6. Brief History of FX Trading - 2 <ul><li>The US dollar became the key currency in this system. The currencies of the participating countries could be changed into US dollars at a fixed rate and the respective central banks could change dollars into gold at a fixed rate. This system was built upon the stability of the dollar. The currencies were allowed to fluctuate within a band width of 1% plus or minus. When currencies exceeded this range, the respective central banks were obligated to intervene. </li></ul><ul><li>However, doubts began to arise over the stability of the dollar in the wake of the Vietnam War and the ensuring massive foreign trade deficit. In 1971, President Richard Nixon devalued the US dollar. The system set into place by the Bretton Woods agreement ended in 1973 and currencies were allowed to float freely on the global market. However, even today, many currencies remain fixed or pegged to the US dollar. </li></ul><ul><li>Many changes were seen in the wake of the rise of the internet and the invention of the euro. Daily trading volume has risen from about $70 billion in the mid 1980’s to $1.8 trillion today. </li></ul>
  7. 7. <ul><li>The forex market provides the liquidity for all market participants to convert their trade and financial flows from the currency of one money centre to the currency of another </li></ul><ul><li>Surveys over recent years tend to indicate that participants can broadly be divided into 3 main groups </li></ul><ul><ul><li>banks </li></ul></ul><ul><ul><li>brokers </li></ul></ul><ul><ul><li>clients </li></ul></ul><ul><li>Commercial banks are by far the most active while brokers act as intermediaries </li></ul><ul><li>Clients can be classed as anything from multinational corporations to individual investors to retail to speculators </li></ul><ul><li>Other major participants include </li></ul><ul><ul><li>governments </li></ul></ul><ul><ul><li>IMM </li></ul></ul><ul><ul><li>money managers </li></ul></ul>Major Participants
  8. 8. Roles Played <ul><li>Market Makers </li></ul><ul><ul><li>known as dealers or traders </li></ul></ul><ul><ul><li>market participants that buy and sell currencies </li></ul></ul><ul><ul><li>quote a two-way price to another market maker </li></ul></ul><ul><ul><li>but not to most clients </li></ul></ul><ul><li>Price Takers </li></ul><ul><ul><li>market participants who seek to either buy or sell currencies </li></ul></ul><ul><ul><li>usually clients </li></ul></ul><ul><ul><li>there is no reciprocity inasmuch as they won’t quote prices back to other market participants </li></ul></ul><ul><li>Others include </li></ul><ul><ul><li>Speculators who seek profits as a reward for their activities </li></ul></ul><ul><ul><li>Central banks who seek to stabilize markets through intervention </li></ul></ul><ul><ul><li>Brokers who act as middlemen and as such do not take positions on their own behalf </li></ul></ul>
  9. 9. Purposes <ul><li>Transactions </li></ul><ul><ul><li>commercial…importers / exporters </li></ul></ul><ul><ul><li>funding…coverage for commercial loans or foreign investment portfolios </li></ul></ul><ul><ul><li>hedging…of any open currency exposure…often covered via currency options </li></ul></ul><ul><ul><li>portfolio investment…foreign securities…overseas portfolios </li></ul></ul><ul><ul><li>Personal…tourists…immigrants…house buying abroad </li></ul></ul><ul><li>Market Making </li></ul><ul><ul><li>positioning against anticipated currency movements </li></ul></ul><ul><li>Exposure </li></ul><ul><ul><li>transaction…impacts a company’s profit and loss and cash flow </li></ul></ul><ul><ul><li>translation…impacts a company’s balance sheet </li></ul></ul><ul><ul><li>economic…relates to a company's exposure to foreign markets and suppliers </li></ul></ul>
  10. 10. Forex Products <ul><li>Spot trades - the ratio at which one currency is exchanged for another for settlement in two business days times </li></ul><ul><li>Forward contracts - a transaction executed today for delivery on a specified date in the future that is not spot </li></ul><ul><li>Non Deliverable Forwards - a cash settled forward used mostly by emerging market currencies </li></ul><ul><li>Forex swaps - the simultaneous purchase and sale for two different value dates </li></ul><ul><li>Currency swaps - involves the exchange of cash flows with an agreement to reverse the transaction at a future date </li></ul><ul><li>Currency options </li></ul><ul><li>Futures – to buy or sell a standard quantity of a given instrument, at an agreed price, on a given date </li></ul><ul><li>EFP – refers to exchanging a physical (cash) position for a futures position </li></ul>
  11. 11. Regulatory Authorities <ul><li>As there is no central trading exchange for the forex markets, one may wonder how it can be regulated. There are several regulatory authorities that guarantee a minimum of security. These authorities review the business practices of market participants and serve as a clearing house for client complaints. For example: </li></ul><ul><ul><li>UK = Financial Services Authority (FSA) </li></ul></ul><ul><ul><li>USA = Commodity Futures Trading Commission (CFTC) </li></ul></ul><ul><ul><li>USA = National Futures Association (NFA) </li></ul></ul><ul><ul><li>Switzerland = Eidgenossisches Finanzdepartment (EDF) </li></ul></ul><ul><ul><li>Germany = Bundesanstalt fur Finanzdienstleistungsaufsicht </li></ul></ul><ul><li>Market participants should be aware that complete financial safeguards are not guaranteed </li></ul>
  12. 12. What’s on Offer? <ul><li>Wondering what the majors and exotics are? </li></ul><ul><li>Forex trading generally refers to the classic currency pairs: </li></ul><ul><ul><li>Eur/usd </li></ul></ul><ul><ul><li>Gbp/usd </li></ul></ul><ul><ul><li>Usd/jpy </li></ul></ul><ul><ul><li>Usd/chf </li></ul></ul><ul><ul><li>and crosses of the above </li></ul></ul><ul><li>However, the potential exists to trade just about any other currency pair where there is a tendency to have more pronounced movements – the exotics: </li></ul><ul><li>But, a drawback with trading exotics is that they tend to have much less liquidity than the majors and sometimes cannot be traded 24 hours. </li></ul>
  13. 13. Composition of a Dealing Room <ul><li>Traders – buy and sell in all areas of the financial market </li></ul><ul><li>Fund managers – may invest funds for themselves or on behalf of their clients </li></ul><ul><li>Corporate treasurers – as part of a treasury department within an institution </li></ul><ul><li>Brokers – mediate between buyers and sellers i.e. clients and traders </li></ul><ul><li>Sales – act as an intermediary between clients and traders </li></ul><ul><li>Decision management </li></ul><ul><ul><li>economists </li></ul></ul><ul><ul><li>analysts </li></ul></ul><ul><ul><li>researchers </li></ul></ul><ul><li>General management </li></ul><ul><li>Trader support – position keeping and assisting traders </li></ul><ul><li>Back office support – administrative tasks connected with dealing </li></ul>
  14. 14. The Workplace -1
  15. 15. The Workplace - 2 <ul><li>Noise </li></ul><ul><ul><li>a dealing room is open plan </li></ul></ul><ul><ul><li>constant noise from traders shouting prices and orders and from squawk boxes broadcasting brokers’ prices </li></ul></ul><ul><ul><li>traders and sales use several telephones and tend to call across the room </li></ul></ul><ul><li>Performance monitoring </li></ul><ul><ul><li>all telephone and automated dealing systems are recorded </li></ul></ul><ul><ul><li>at the end of the day the traders’ estimates of p / l must reconcile with those of the back office </li></ul></ul><ul><li>Computer systems </li></ul><ul><ul><li>may contain 3 or 4 computer screens per desk </li></ul></ul><ul><ul><li>these could include Bloomberg, Reuters, EBS, e-forex platform </li></ul></ul><ul><li>Other equipment </li></ul><ul><ul><li>dealer boards </li></ul></ul><ul><ul><li>tally sheets – both paper and electronic </li></ul></ul>
  16. 16. Forex Traders <ul><li>Traders </li></ul><ul><ul><li>buy and sell in all areas of the financial market </li></ul></ul><ul><ul><li>aim to buy low and sell high </li></ul></ul><ul><ul><li>may specialise in a particular type of financial instrument </li></ul></ul><ul><li>Chief dealer </li></ul><ul><ul><li>manages a group of traders </li></ul></ul><ul><ul><li>sets the credit / risk limits for each trader </li></ul></ul><ul><ul><li>checks end of day positions and agrees profit and loss for the day </li></ul></ul><ul><li>Proprietary trader </li></ul><ul><ul><li>takes positions on behalf of the institution </li></ul></ul><ul><ul><li>tend to take decisions based on detailed technical and fundamental research </li></ul></ul>
  17. 17. Characteristics of Forex Traders <ul><li>Majority of traders are in their mid 20’s to late 30’s </li></ul><ul><li>Very few are over the age of 50 </li></ul><ul><li>There are few female traders working in London </li></ul><ul><li>Almost half are estimated to have a degree – often not in a financial subject </li></ul><ul><li>Have to be quick thinking </li></ul><ul><li>Be able to run their positions in their head </li></ul><ul><li>Have ability to prioritise information </li></ul><ul><li>Motivated purely by profit which they earn from their bid/ask spread </li></ul><ul><li>Some traders work their way up from the bottom and come via the back office </li></ul><ul><li>All are required to achieve appropriate profit targets </li></ul><ul><li>In general they are relatively inexperienced computer users </li></ul><ul><li>Employers tend to be unsympathetic to traders who do not achieve required levels of performance </li></ul>
  18. 18. External Relationships - 1 Counterparty FX Trader Broker Unknown Counterparty buy and sell directly buy or sell request sell or buy request
  19. 19. External Relationships - 2 <ul><li>Counterparty </li></ul><ul><ul><li>will conduct deals with their opposite number in another institution </li></ul></ul><ul><ul><li>this could be done via the phone, internet or Reuters Dealing system </li></ul></ul><ul><ul><li>in 75% of cases the counterparty is another bank </li></ul></ul><ul><ul><li>otherwise counterparties are clients or traders or other financial institution </li></ul></ul><ul><li>Brokers </li></ul><ul><ul><li>less than a third is performed via “voice” brokers </li></ul></ul><ul><ul><li>used to find counterparties for trades </li></ul></ul>
  20. 20. Relationships with Colleagues - 1 Sales Desk Position Keeper Back Office Economists Analysts Strategists Senior Trader Chief Dealer Forex Trader
  21. 21. Relationships with Colleagues - 2 <ul><li>Chief dealer </li></ul><ul><ul><li>has responsibility for a dealing group </li></ul></ul><ul><ul><li>liaises between managers and traders </li></ul></ul><ul><ul><li>defines overall strategy in line with state of the market </li></ul></ul><ul><ul><li>close interaction in terms of market activity, positions held, and the p / l </li></ul></ul><ul><ul><li>assesses individual total trading room and traders’ dealing limits </li></ul></ul><ul><ul><li>assesses the exposure of the dealing room as a whole and takes corrective action when necessary </li></ul></ul><ul><li>Senior trader </li></ul><ul><ul><li>controls their team </li></ul></ul><ul><ul><li>constantly managing positions held </li></ul></ul><ul><ul><li>must deal and run their own positions </li></ul></ul><ul><ul><li>monitor all aspects of the market – even parts of the dealing room for which they are not responsible </li></ul></ul>
  22. 22. Relationships with Colleagues - 3 <ul><li>Sales desk </li></ul><ul><ul><li>do not normally communicate directly with traders </li></ul></ul><ul><ul><li>manages the relationship between client and trader </li></ul></ul><ul><ul><li>passes deals and orders to the traders </li></ul></ul><ul><ul><li>in some institutions they will quote the client off their own back and run positions </li></ul></ul><ul><li>Economists, analysts, research and strategists </li></ul><ul><ul><li>look at macro and micro economic developments during the trading day </li></ul></ul><ul><ul><li>assess likely impact of world news, market movements, interest rate fluctuations etc </li></ul></ul><ul><ul><li>use charts to identify past trading patterns that may provide clues to future trends </li></ul></ul><ul><ul><li>pass information to traders, sales staff and clients directly </li></ul></ul><ul><ul><li>use fundamentals and models to back up their ideas </li></ul></ul><ul><ul><li>some may take positions to back up their views </li></ul></ul>
  23. 23. Relationships with Colleagues - 4 <ul><li>Position Keeper </li></ul><ul><ul><li>Keep traders’ positions up to date </li></ul></ul><ul><ul><li>Notify traders if they overstep their exposure limits </li></ul></ul><ul><ul><li>Check deal tickets </li></ul></ul><ul><ul><li>Keep in contact with the back office </li></ul></ul><ul><ul><li>May assist traders by calling up prices </li></ul></ul><ul><li>Back Office </li></ul><ul><ul><li>processes the deal tickets </li></ul></ul><ul><ul><li>check ticket details </li></ul></ul><ul><ul><li>make payments and reconcile accounts </li></ul></ul><ul><ul><li>prints out positions </li></ul></ul><ul><ul><li>make sure p / l and position calculations agree with traders own assessment </li></ul></ul>
  24. 24. Common Tasks <ul><li>Form an opinion </li></ul><ul><li>Receive analysts’ predictions </li></ul><ul><li>Trade on the markets </li></ul><ul><li>Complete details of a deal </li></ul><ul><li>Complete administration for the day </li></ul><ul><ul><li>manual entry of deals </li></ul></ul><ul><ul><li>assistance from position keeper </li></ul></ul><ul><ul><li>check off profit / loss for the day </li></ul></ul><ul><ul><li>check positions </li></ul></ul>
  25. 25. Forex Salespeople <ul><li>Their role is to generate business for the institution </li></ul><ul><li>Their aim is to keep in touch with the market </li></ul><ul><li>To be aware of facts, rumours and gossip </li></ul><ul><li>To make as many sales as possible </li></ul><ul><li>They are not responsible for the banks profit </li></ul><ul><li>They do not manage trading positions but makes sure the institution has trading positions in the first place </li></ul><ul><li>There is regular contact with existing clients to inform them of any trading opportunities </li></ul><ul><li>And with potential clients to develop any new business opportunities </li></ul><ul><li>They are remunerated either via bonuses on achievement of set revenue targets or via commissions </li></ul>
  26. 26. Characteristics of Salespeople <ul><li>Personality is definitely the most important characteristic </li></ul><ul><li>Tend to be very outgoing and extrovert and have fairly strong personalities </li></ul><ul><li>Have good interpersonal skills </li></ul><ul><li>Ability to entertain and communicate with a variety of people with different needs </li></ul><ul><li>Enjoy lots of activity </li></ul><ul><li>Understands the market and what represents good value </li></ul><ul><li>Understands the clients and their needs </li></ul><ul><li>Are motivated to be aware of any price breaking news or gossip </li></ul><ul><li>Quite often, salespeople are ex-traders </li></ul><ul><li>Young and old mix well together </li></ul>
  27. 27. Working Relationships Commercial Banker Back Office Trader Section Head Economists Analysts Strategists Client Salesperson
  28. 28. Working Relationships <ul><li>Client </li></ul><ul><ul><li>can be anything from a corporate treasure to a fund manager to a speculator </li></ul></ul><ul><li>Section Head </li></ul><ul><ul><li>manage and assign clients to salespeople </li></ul></ul><ul><ul><li>tries to match the clients to an appropriate salesperson </li></ul></ul><ul><li>Analysts and Economics </li></ul><ul><ul><li>provide information about market trends, trading opportunities and other factors that may influence the markets </li></ul></ul><ul><li>Back Office </li></ul><ul><ul><li>to determine payment and settlement details </li></ul></ul><ul><li>Commercial Banker </li></ul><ul><ul><li>a separate division for dealing with commercial clients re loans, trade finance etc </li></ul></ul><ul><li>Trader </li></ul><ul><ul><li>gets prices from </li></ul></ul>
  29. 29. Common Tasks <ul><li>Understand clients’ requirements and constraints </li></ul><ul><li>Answer a client enquiry </li></ul><ul><li>Help sort out back office issues in relation to their client </li></ul><ul><li>Communicate with relationship/account managers </li></ul><ul><li>Call a client with an opportunity </li></ul><ul><li>Get a price from a trader </li></ul><ul><li>New business development </li></ul>
  30. 30. Analysts <ul><li>Analysts research the financial outlook of market sectors and economies </li></ul><ul><li>They make recommendations </li></ul><ul><li>This is a highly specialised field </li></ul><ul><li>Market specialists </li></ul><ul><ul><li>makes predictions on a specific region or currency </li></ul></ul><ul><li>Macro-economists </li></ul><ul><ul><li>makes predictions on an economy as a whole </li></ul></ul><ul><li>Forms of analysis </li></ul><ul><ul><li>fundamental </li></ul></ul><ul><ul><li>technical </li></ul></ul><ul><li>Sell-side </li></ul><ul><ul><li>form a view of the market and to generate recommendations for clients </li></ul></ul><ul><ul><li>small percentage are also involved in proprietary trading </li></ul></ul><ul><li>Buy-side </li></ul><ul><ul><li>recommend that their fund managers buy certain products </li></ul></ul>
  31. 31. Characteristics of Analysts <ul><li>Educational background </li></ul><ul><ul><li>tend to be degree-educated </li></ul></ul><ul><ul><li>economics tends to be favourite </li></ul></ul><ul><li>Common routes </li></ul><ul><ul><li>as a trainee analyst after university </li></ul></ul><ul><ul><li>qualify as an accountant and then move into analysis </li></ul></ul><ul><ul><li>work in a certain sector in industry and then move </li></ul></ul><ul><li>Takes a long time to gain a feel for a particular market </li></ul><ul><li>Have a good understanding of their sector </li></ul><ul><li>Often receive performance related pay </li></ul><ul><li>Surveys are conducted on a regular basis to find out the best </li></ul>
  32. 32. Common Tasks <ul><li>Depends on whether they work on the buy or sell side as they tend tro analyse the same information for different purposes </li></ul><ul><li>Form a view </li></ul><ul><li>Write the morning report </li></ul><ul><li>Brief the sales force </li></ul><ul><li>Client visits </li></ul><ul><li>Research </li></ul><ul><ul><li>online information </li></ul></ul><ul><ul><li>other information </li></ul></ul><ul><li>Attending conferences </li></ul>
  33. 33. Final Remarks <ul><li>Foreign exchange is both a science and an art </li></ul><ul><li>Risks can be quantified and alternatives identified to reduce or eliminate it </li></ul><ul><li>But judgement, personal attitudes towards risk, as well as other personal and corporate orientations are required for consistent position management </li></ul><ul><li>And what of the future? </li></ul><ul><ul><li>the market place is changing rapidly with the arrival of electronic trading </li></ul></ul><ul><ul><li>participants are looking for faster and tighter pricing with faster news flows than ever before </li></ul></ul><ul><ul><li>value addness is all important </li></ul></ul><ul><li>However, at the end of the day - the forex market will always be a people-to-people industry </li></ul>

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