HAVING WORKED FOR MANY YEARS WITH JPMCHASE INTERNATIONAL CURRENCY DEPT AS A VICE PRESIDENT, THERE IS ALOT OF RUMORS GOING AROUND THAT CERTAIN BANKS ARE SHOWING IN THEIR “BACK OFFICE SYSTEMS” CERTAIN REVALUED PRICES FOR THE IRAQI CURRENCY. THERE IS NO SUCH SYSTEM ON CURRENCY BANKING SOFTWARE. THERE IS NO LOGICAL REASON THAT A FICTIOUS PRICE WOULD FILTER IT WAY INTO A SYSTEM FOR NO REASON AT ALL. !ST IT WOULD BE EXTRA LABOR FOR THERE IT/INFORMATION DEPT TO BE PLAYING BACK OFFICE PRICING GAMES, WHEN THAT PRICE IS NOT EVEN AUTHORIZED FOR RELEASE. WHEN CURRENCIES ARE REISSUED/REVALUED, THEIR ARE THREE MAJOR CLEARING HOUSES THAT HANDLE ALL INTERNATIONAL TRADE OF CURRENCIES, LETS CALL THEM “GLOBAL TRADING/EXECUTING HOUSES. THE PRICE IS RELEASED TO THESE 3 HOUSES, THEY HANDLE THE BUY/SELL. WHEN THE PRICE IS SET EITHER BEING A “BASIC BASKET CURRENCY” OR A “EXOTIC CURRENCY” THE SPEADS ARE CALCULATED FOR PROFIT TRADING. THESE HOUSES ARE CLEARING CENTERS FOR BANKS, CURRENCY TRADING DEPTS, RETAIL INVESTORS WORKING WITH FOREX PLATFORMS. EACH ONE OF THESE WILL HAVE DIFFERENT SPREADS DEPENDING ON THEIR “SELL/BUY PORTFOLIOS. SOME OF THESE INVESTORS TRADE HEAVILY IN THE MARKET SO THE SPREADS OFFERED THEM IS LESS BECAUSE OF THE VOLUME THEY SELL AND BUY. OTHERS THE SPREAD IS HIGHER BECAUSE THEIR VOLUME IS LOWER.
SO WHEN THE BANK, CURRENCY TRADERS, RETAIL INVESTORS ENTER THE MARKET THEY WILL DEAL WITH 1 OF THE THREE CLEARING HOUSES, WHEN A CURRENCY IS SOLD THERE HAS TO BE A BUYER, THAT 1 TRANSACTION MAY SIT ON THE MARKET FOR SECONDS, MINUTES OR HOURS UNTIL THE BUY/SELL SPREAD HAS BEEN MATCHED WITH EITHER A BUYER OR SELLER. THIS ALL COMES INTO PLAY ON PURCHASING DEMAND OR DROP SELLING POWER. IT FLUCTUATES CONSTANTLY.
SO WHEN I READ ABOUT ALL THESE BANKS HAVING “BACK OFFICE PRICEING” WHEN THE PRICE DOESNT EVEN EXIST AT ANY OF THE 3 CLEARING HOUSES, I WONDER WHERE ALL THIS INFORMATION IS COMING FROM. IN THE 15 YEARS OF HAVING WORKED SIDE BY SIDE WITH SOME OF THE BEST TRADERS IN THE MARKET, I HAVE NEVER HEARD OF SUCH FANTASY. NOW I AM NOT SAYING SOMEONE IS FEEDING YOU BAD INFORMATION , I JUST THINK THEY HAVE BEEN MISINFORMED.
WHEN THE PRICE OPENS NOT ALL BANKS JUMP IN IMMIDIATLY, THE PRICEING MAY NOT CONFORM TO THEIR PORTFOLIO, OR THEY DONT HAVE ENOUGH TO HEDGE IN THAT ONE CURRENCY. CURRENCIES ARE VERY VOLOTILE, AND IN SECONDS A BANK CAN BE ON THE LOSING END IF THE PIPS MOVE IN THE WRONG DIRECTION AND THE SPREAD CAN NOT COVER WHAT THEY SOLD/BOUGHT FOR.
MOST BANKS WILL HAVE A ONE DAY PRICE AND THE SPREAD WILL COVER FOR MOVEMENT IN ANY DIRECTION, SOME BANKS WILL STOP TRADING IN THE CURRENCY IF IT HAS TO MUCH OF A DRASTIC MOVEMENT. YOU MAY WALK INTO A BANK AND THEIR MORNING PRICE WILL BE THE SAME AS THEIR AFTERNOON PRICE EVEN THO THE CURRENCY HAS MOVED DRAMATICALLY.
LISTEN FOLKS, THEIR IS NO “BACK OFFICE PRICEING SYSTEM. THE CLEARING HOUSES EXECUTE THE PRICE TO THE BANKS OR INVESTORS, THE MARKET IS VERY DICTORIAL IN ITS PROCESSES, IF IT WERENT IT WOULD BE CHAOS. TRUST ME, THEIR IS NO BACK OFFICE PRICE. AND THE ONE’S THAT ARE BEING QUOTED ARE RIDICULOUS. THEIR SO OUT OF THE TRUE GLOBAL EXCHANGE RATE, LETS GET BACK TO REALITY AND WAIT FOR THE TRUE RV VALUE TO HIT THE MARKET THE WAY IT HAS FOR THE LAST 20 YEARS. YES NOW WITH COMPUTERS ITS MUCH FASTER TRANSACTIONS AND EXECUTIONS, BUT THEIR IS STILL A METHOD OF PROCESS, IF YOU DONT BELIEVE ME CALL ANY FOREX COMPANY AND TALK TO ONE OF THEIR CUSTOMER SERVICE TRADERS AND LEARN FOR YOURSELF.
RUDY
SO WHEN THE BANK, CURRENCY TRADERS, RETAIL INVESTORS ENTER THE MARKET THEY WILL DEAL WITH 1 OF THE THREE CLEARING HOUSES, WHEN A CURRENCY IS SOLD THERE HAS TO BE A BUYER, THAT 1 TRANSACTION MAY SIT ON THE MARKET FOR SECONDS, MINUTES OR HOURS UNTIL THE BUY/SELL SPREAD HAS BEEN MATCHED WITH EITHER A BUYER OR SELLER. THIS ALL COMES INTO PLAY ON PURCHASING DEMAND OR DROP SELLING POWER. IT FLUCTUATES CONSTANTLY.
SO WHEN I READ ABOUT ALL THESE BANKS HAVING “BACK OFFICE PRICEING” WHEN THE PRICE DOESNT EVEN EXIST AT ANY OF THE 3 CLEARING HOUSES, I WONDER WHERE ALL THIS INFORMATION IS COMING FROM. IN THE 15 YEARS OF HAVING WORKED SIDE BY SIDE WITH SOME OF THE BEST TRADERS IN THE MARKET, I HAVE NEVER HEARD OF SUCH FANTASY. NOW I AM NOT SAYING SOMEONE IS FEEDING YOU BAD INFORMATION , I JUST THINK THEY HAVE BEEN MISINFORMED.
WHEN THE PRICE OPENS NOT ALL BANKS JUMP IN IMMIDIATLY, THE PRICEING MAY NOT CONFORM TO THEIR PORTFOLIO, OR THEY DONT HAVE ENOUGH TO HEDGE IN THAT ONE CURRENCY. CURRENCIES ARE VERY VOLOTILE, AND IN SECONDS A BANK CAN BE ON THE LOSING END IF THE PIPS MOVE IN THE WRONG DIRECTION AND THE SPREAD CAN NOT COVER WHAT THEY SOLD/BOUGHT FOR.
MOST BANKS WILL HAVE A ONE DAY PRICE AND THE SPREAD WILL COVER FOR MOVEMENT IN ANY DIRECTION, SOME BANKS WILL STOP TRADING IN THE CURRENCY IF IT HAS TO MUCH OF A DRASTIC MOVEMENT. YOU MAY WALK INTO A BANK AND THEIR MORNING PRICE WILL BE THE SAME AS THEIR AFTERNOON PRICE EVEN THO THE CURRENCY HAS MOVED DRAMATICALLY.
LISTEN FOLKS, THEIR IS NO “BACK OFFICE PRICEING SYSTEM. THE CLEARING HOUSES EXECUTE THE PRICE TO THE BANKS OR INVESTORS, THE MARKET IS VERY DICTORIAL IN ITS PROCESSES, IF IT WERENT IT WOULD BE CHAOS. TRUST ME, THEIR IS NO BACK OFFICE PRICE. AND THE ONE’S THAT ARE BEING QUOTED ARE RIDICULOUS. THEIR SO OUT OF THE TRUE GLOBAL EXCHANGE RATE, LETS GET BACK TO REALITY AND WAIT FOR THE TRUE RV VALUE TO HIT THE MARKET THE WAY IT HAS FOR THE LAST 20 YEARS. YES NOW WITH COMPUTERS ITS MUCH FASTER TRANSACTIONS AND EXECUTIONS, BUT THEIR IS STILL A METHOD OF PROCESS, IF YOU DONT BELIEVE ME CALL ANY FOREX COMPANY AND TALK TO ONE OF THEIR CUSTOMER SERVICE TRADERS AND LEARN FOR YOURSELF.
RUDY
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