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The original foreign exchange market offer is so formed

{}Posted in2023/2/26 9:01:34 | 10Browse

international cashbackforexexness forexcashrebate market trading body if a tree to analogy, then the cashback forex Forex rebate for Exness the trunk, other traders ForexrebateforExness investors is the branches and leaves of the banks offer is based on their foreign exchange liabilities (is everyones deposits) and foreign exchange assets risk control standards to decide the In order to prevent a run or other risks, the banks foreign currency reserves must There is diversity, which brings great market risk to the banks operations, so the general bank for each of its foreign currency holdings will have a risk control amount, for example, 100 million dollars (risk control amount ± 10%), 80 million euros (risk control amount ± 5%), 100 million Swiss francs (risk control amount ± 15%) )  When the amount of a currency held is higher or lower than the allowed risk control range, the bank must close out the foreign currency, so that the amount of the currency held is within the controlled risk limit, then the bank will set its own offer for the currency based on the market forexrebates at the time and the market price they want and the amount they need, this offer may be similar to other banks offers When the exchange rate of a currency is very favorable to the bank, the bank will consider trading that currency at that price, but because of the quantity, maturity and other issues, most of the time the quotes we see in Reuters and Bloomberg are agreed prices, or Intentional price, whether it is possible to deal in accordance with this price, or unknown quotes are so formed.png "width="561 "height="363"/>Thomson Reuters EIKON financial terminal Bloomberg terminal The banks offer to its own customers is often acceptable to the bank, and easy to Immediately external closing price, and in quantity, much smaller than the amount of their own risk control on this currency, once the customers transaction volume is too large, the trader will tell you another price Foreign exchange transactions are inquiry transactions, also known as agreement transactions, the banks external offer is also independent, the banks offer for each customer is also independent, the offer that we see Most of the quotes that we see are a combination of multiple bank quotes centrally reflected in the independent individual for the transaction, the bank can quote to this individual alone, of course, the bank can also quote for a particular group  If you use the Reuters quote terminal, you can see that each quote is followed by a bank abbreviation, which indicates that the bank reported to the market at the last moment If someone responds, that person will contact the bank directly, not Reuters Sometimes, after trading with a bank, within a short time, you can see that the bank you traded with quoted a price on the Reuters terminal that is the same as your trade price (or a difference of 1 to 2 pips). This indicates that the bank may be due to a transaction with you, the external closing, or of course, it may be some other bank to the bank when the closing, the banks position is not enough, need to do another and you just traded at the same price (or about the same) to make up the position Since the settlement period of large transactions will often be 48 hours, there are many times, we can also be in the Reuters terminal communication system See the inquiry information between the bank and the bank, sometimes their inquiries are very funny, moving to say this price can help me stay a day (or a few hours, a period of time)? And her inquiry opponent will sometimes answer can only stay 12 hours, after please re-quote cold back to the past, always give people a hot face to the cold ass feeling, relatively large volume of foreign exchange market, but each of its transactions are dark box operation, you do not know your trading bank actual, acceptable price is what, you do not know your trading bank actual, acceptable volume is how much So we cant count the volume of transactions through a reasonable mechanism On the other hand, although the entire foreign exchange market has a daily trading volume of more than $5.3 trillion, the vast majority of traders or quoters have a trading quota authorization limit when trading, and once hes out of trading quota for that time period, she will also coldly tell you that there is no price now ⊙ Basically, the current offer has such a few kinds of inquiry: send an inquiry price, waiting for other banks to respond, or to a characteristic target (other banks, brokers, customers) to send an inquiry price, waiting for its response, this price will be reflected in the Reuters or Bloomberg terminal, but also in their communication system this price is a one-way price. This type of quotation often occurs when the dealer (Dealer) of the prescribed authorized amount or a certain currency risk control limit is insufficient Quotation: report their current buying and selling price, waiting for others to respond, in general, we see quotations on certain margin trading platforms, bank websites, because the quoter does not know whether you are buying or selling, this kind of quotation until the price is reported The price of the dealer (Dealer) of the authorized amount full or the currency risk amount reached a certain level after the dealers offer will change Summary price: generally occurs in the brokers external offer, the broker will be the price of the most similar (but not the same) the most similar time (may be the same time) of the two offers put together for aggregation, and then the external offer, waiting for The response of both sides of the transaction because there is a number of issues here, so in general the broker will put forward the number of requirements they want, if the broker very much want to facilitate the transaction between the two sides of the transaction, then he will use their own funds to make up the difference in the number, the price will also be reflected in the Reuters or Bloomberg terminal The difference between the foreign exchange quotes and individual foreign exchange trading quotes in our country The foreign exchange quotation is the foreign exchange quotation of the designated foreign exchange banks, is the banks according to the Peoples Bank of China announced the RMB market mid-price and the international foreign exchange market, the development of various foreign currencies and RMB between the purchase and sale price (the branches, branches and the head office foreign exchange quotation is the same) this price in the same day will not change, but in different dates may have changes investors know The personal foreign exchange trading (foreign exchange treasure) quotes, is the foreign exchange designated bank is shown between the foreign currency and the U.S. dollar trading price (direct exchange rate), and the two foreign currencies other than the U.S. dollar cross-rate (cross-rate) this price is constantly changing, similar to the stock market quotes constantly updated, so this price in a day there are the highest and lowest price personal foreign exchange trading (foreign exchange treasure) quotes is actually The international foreign exchange market in a domestic area, a foreign exchange designated bank of the local extension, it as can instantly deal with the market price, the variability of the larger It should be noted that the exchange rate quotes are reported by banks and other market makers according to the real-time quotation of the foreign exchange market, similar to the Reuters such foreign exchange trading terminal platform, its aggregation is only the market makers and market makers reported foreign exchange prices The number of ordinary institutions and individuals due to the number of transactions is difficult to meet the conditions, so simply can not enter these terminal platform, more likely to deal directly, can only accept the broker or bank offer, in order to reach a deal with the broker or bank That is, with the trader to trade is not another trader, but a bank or broker, you are just doing business with the bank or broker Because the formal channels for exchanging foreign currency are in the bank, even if the trader is doing virtual electronic trading, but still can not be separated from this essential premise Even if the trader opens an account with a broker and trade, the broker is mostly trading with the big international banks, when the big international banks internal foreign exchange trading overflow phenomenon, only then will the excess buy or sell orders and their prices The Reuters terminal instant exchange rate page, for traders to instantly display the worlds major banks foreign exchange trading reference data, it is worth noting that the exchange rate is only a reference price, not the trader to participate in the market transaction price ⊙ foreign exchange trading quotation form foreign exchange trading quotation terms and their meaning BigFigure ( TheBigFigure): the basic part of the exchange rate, usually the trader will not be reported, only when the need to confirm the transaction, or in the highly variable market will be reported such as GBP/USD = 1.6500, 5 is the big number TheSmallFigure: the last two numbers of the exchange rate, such as in GBP/USD = 1.6500, 00 is the big number TheSmallFigure: the last two numbers of the exchange rate, such as in GBP/USD = 1.6500 in, 00 is the small number Base point (Pips or Points): the smallest part of the change in the exchange rate, usually also called the point in the above 5 valid numbers, from the right to the left to count over, the first called X (basic) points, the second called X + a (basic) points, the third called X hundred (basic) points, and so on Point spread ( TheSpread): the difference between the bid and ask price Bid: is the market maker ready to buy the base currency offer to the quoter, that is, the offer bank or foreign exchange broker at the time of the offer is willing to buy the highest price of the currency being offered to the quoter, the offer bank quoted the buy price on behalf of the quoter can sell the highest price of the currency being offered to the quoter. The quoter, of course, wants the higher the ask price, but from the quoters point of view, the quoting bank wants the lower the bid price, the better  Offer: the price at which the market maker is prepared to sell the base currency. The lowest price at which the quoted currency can be bought