Euro

Discussion in 'Trading' started by J-S, Oct 19, 2002.

  1. Trajan

    Trajan

    It depends on your perspective. Currency trading is mostly done through the dollar. If a German trader wants to buy Yen and sell his Euros, he will typically buy dollars first and then use them to buy Yen. The Euro/Yen cross is quoted but is not as heavily traded as each currency is against the dollar.
     
    #11     Oct 22, 2002
  2. EUR/JPY is one of the major crosses. The volume might not be as high as EUR/USD or USD/JPY, but it is certainly traded regularly in the spot FX market. Why would this "German" pay two spreads when he can do it directly with one spread?
     
    #12     Oct 22, 2002
  3. Trajan

    Trajan

    It depends on how wide the two spreads are versus the one and how liquid the market is at executable prices. Figures:

    It is where the liquidity is at. It's not that that Euro/Yen doesn't trade, it does, that's why I used the qualifier "typically". There would be a lot of factors going into whether you trade it through the dollar or directly.
     
    #13     Oct 22, 2002