foreign currency trading VS. equity trading

Discussion in 'Trading' started by roumeo, May 14, 2002.

  1. roumeo


    Hi, all,

    I think that I need you guys' suggestion.

    Now I got two offers, one is equity day trading, another one is foreign currency trading/broker.

    The first job is just regular day trading job, but the second one is confusing. It is foreign currency trader plus broker. I have to get the clients by myself and then trading the money from this client I got. And also like day trading, but not equity, but foreign currency. As we know, the volatility of foreign currency exchange is much larger than equity. So without the hedging and by using levelrage, the risk is much larger.

    Since I don't know foreign exchange industry, I have no idea whether this way to do business is normal. at present, based on job description, the risk of foreign exchange is much larger than the day trading: 1) get money by myself, 2) trading money I get, 3) trading high volatility without hedging.

    SO hope someone can give me suggestion. Thanks so much.

  2. wild


  3. roumeo


    Thanks wild first....

    IN this board, nobody is willing to help me?

    help please!!!
  4. as far as FX goes ... I do not have that much experience
    but logically it makes sense to

    check out the integrity of the firm (s)

    due your homework ... ask around ...

    be careful of bad firms ...

    maybe you can send email to gaincapital
    and ask them if you can work for them?

    I think they are a reputable firm

    or maybe you can get a job in a big bank in FX dept?

    good luck
  5. def

    def Interactive Brokers

    Are you sure you know what you are talking about? Check the vols of some specific stocks against something like euro/dollar.

    Besides, increased volatility does not necessarily mean increased risk. The use of derivatives can reduce and/or remove risk from a portfolio.

    Also, you don't give much to go on. Is the FX firm reputable? If they say, go out get some cash and trade it, you've got to wonder why someone would give you cash w/o any track record. Do they have a training program? A salary? Etc.
  6. roumeo


    Thank you guys so much.

    Now the situation is on the following:
    1) NO base salary
    2) Get clients by myself
    3) trade the clients' money I got
    4) No risk management in Company, I have to monitor the risk by myself.
    5) FX day trading.

    Yeah, Def is right. How can I get clients? Where can I get clients? the company name is International Financial Services. Anyone know this firm? Seems that it just started...

    Now I am really wondering what I should I do. Gaincapital seems hard to get in.

    Thanks for all of you guys
  7. Rule of thumb is to be leery of companies with International or other generic all inclusive titles that give them "credibility." This also applies to IHOP.

    The terms you cite don't look that great...
  8. roumeo


    Hi, Tripack,

    Sorry, can you tell me in more detail. I don't quite understand what you said. I am a new guy in trading industry. So I am not familar with some terms. Sorry. :) Please give me more information, please. Now I am in the cross road.

    Thanks very much

  9. If the FX firm is new and has "International" in the name I would be wary/cautious/skeptical.

    The real question is do you want to beat the bushes as a FX salesman / trader or just do the equities trading? Do you know anything about the FX or equities markets you would be trading?
  10. Be careful about FX Trading specially non-exchange traded contracts (spot) There are a lot of non-reputable firms out there. In addition, I think it is harder to trade because of market fragmentation, I traded it a while ago - I remember it being dead save for a little time window where 2 market centers are open ( w/ NY and Asia w/ london. )

    good luck
    #10     May 15, 2002