FX Trader
A Reuters guide to FX Trader
Find out about how Reuters can help you
Currencies worth more than $ 1 trillion are traded daily in the fast-paced global FX market. The market is primarily an interbank market where traders conduct business electronically across all time zones.
FX trading volumes are rising after several years of decline. The introduction of the euro and banking consolidation, which led to a reduction in the number of FX traders in the market, contributed to the downturn. But recent exchange rate volatility, amongst other factors, has generated increased levels of FX trading.
FX traders trade in spot, where currency is bought or sold for immediate delivery; in forwards which are agreements to buy or sell currency at a future date for a fixed price; in futures which are contracts allowing investors to buy or sell at a future date but also to close out their positions beforehand; and in options that grant rights but not the obligation to buy or sell.
FX traders, whether they are proprietary traders dealing on behalf of their own institutions or sales traders dealing for clients, need access to a comprehensive information service which provides real-time exchange rate data as well as news and analysis of a wide variety of events that can cause currency rate movements. Traders need to keep abreast of both general news and market-specific news which can range from central bank interventions in the market to interest rate changes and announcements by key officials on economic and policy issues.
FX traders also require sophisticated market analysis tools and secure electronic trading systems that provide immediate access to liquidity and enable them to deal easily and with speed.
A large community of FX traders uses Reuters Dealing Direct, an electronic conversational system that allows them to communicate with their counterparties and trade. FX traders also use electronic matching systems where they can match bids and offers anonymously and automatically.
Reuters has a long history of helping FX traders operate more effectively. Reuters revolutionised the FX market when it pioneered an electronic marketplace in the early 1980s, creating greater transparency and liquidity. Reuters innovation enabled FX traders to complete deals on screen in seconds.
In addition to its leading FX and money information services and conversational trading application, Reuters provides traders with electronic matching services in FX spot, forwards and options.
