Do you think that the adaptation to the conditions of the market is the most important?
Many times in the past I have written about the need to adapt in able to change their behavior in the market, because the markets are always in motion.
You have told me that mechanical systems may be short on the life of markets viable, but only for a time. You must learn to negotiate with what they see and understand what you see in a chart.
When it started to work there were things such as foreign exchange futures contracts. Why don’t they exist? There was no need for them. In the 1970s, the US dollar changed abandoned the gold standard and began to float against other currencies. Then started the Chicago Stock Exchange create a place to create currency futures, where currency traders could cover the risks associated with trading in foreign exchange. Some of these risks are direct and some are indirect. Direct risk involved for those to work directly in foreign exchange. Indirect risk involves companies that exported or imported and receive payments or payments in the currency of another country.
Since I’ve been the the future of the currency, in a State of flux. Have recently gone for purposes of trade which is future, you alternately of badges in a mass of movement to negotiate centered more directly in the currency markets by future of badges. Forward exchange contracts, are numbers actually less liquid than those that had been previously while maintaining its volume and open interest. Show the picture of what is happening in the currency futures-box not, volume and open interest. Volume and the amount of interest are open item of maintenance every time less the operators of the future.
In the period from 1992 to the present, we have seen the currency to move the future of “hot on the Red” “cool” and now as hot as as speculators are concerned. Badge, 1992 was one of those games that more hot, opaque is returned first and foremost, and then turned the exciting.
This is done can in these areas, of which the majority of the merchants of the future are ignorant to see. Power five years it is operators of foreign currency you paid salaries huge and each person with a history practically could to appoint to its price. After that, currency traders were no longer needed. Now, once more, there is a great demand of the operators of the currency with success.
The future of the badge are nothing more than a small representation of the market of the currency $1.5 trillion. The operators of foreign exchange professionals use badge, forwarding of orders, derivatives of all kinds and Futures pits, providing their various trading and hedging strategies. As for the future only as the blind man trying to tell what an elephant is like by feeling only the tusks.
In recent years she will close banks, companies of safe, brokers and other institutions desks of badges in them and laying off hundreds of employees observed. Today, operators of foreign exchange are again looking after them.
In the 1990s, Midland Bank closed its Foreign Office in New York, laying off dozens of people. Frankfurt Bank pulled back from New York and Tokyo closed its currency-exchange service. At that time was the largest operator of Citicorp global currencies. The only German brand of 39 traders working at 17 locations worldwide for merchants 4 d labelling all to work in a space reduced. Please keep in mind that these traders were, use of currency futures had been one degree higher or lower. At this time meant that it was a smaller number of large fluctuations in the currency futures than there once and they benefit so much less were.
But today, the opposite is the case. Central banks are currently much major interventions in the foreign exchange markets. You are no longer targeted publication rates. A surge of currency trading has been such measures of central banks from the leaves of a loss on currency speculators and the result to know what to do.
Due to this runner today currency in abundance and plan the idea of currency speculation, which has a profound effect on the currencies from individuals, companies and Nations to market actively.
If one day would be the main currencies, the United States, the J-Yen dollar and euro, which would require thousands of merchants to trade with them? There were many to create fewer currency misalignments a basis for negotiations. But this is not the manner in which the world is moving. The image, which I have just presented ignores China’s rise as a major economic force on the world stage. China’s currency will be almost certainly a more important commercial vehicle. The same applies to other emerging markets. Some of them, have no doubt more important currencies from the point of view of world trade. But these currencies on the futures markets or currency traded?
It is changes in this unique area-the trading currency are an example of how things change quickly and set up they need that they can customize operator. There are of course many other changes in recent years have been. The emergence of the all Electronic has produced markets markets in a completely different way. Computers have given the possibility to operate in different time frames. New bags created new markets and new contracts — so many, in fact, it’s difficult to know where commercial efforts would rather direct. Now can trade virtually around the clock. It seems that somewhere, some market operates.