Are there trade breaks for so called "fat finger" mistakes in globex currency contracts? Is there a certain amount the futures can trade away from cash fx?
All Globex products can be subject to trade breaks, particularly if executions occur outside of the no-bust range. You should refer to the CME Rulebook, www.cmerulebook.com, for the rules and the specific no-bust ranges for each product, Chapter 5 under CME Globex Error Trade Policy
Gobex currency futures are so easily arbitragable to spot that fat finger moves are corrected much quicker than in the stock index contracts. If you watch the tape on Globex FX Euro you'll see that the depth is dealer dominated with those dealers praying that the contract will get a few pips out of line to spot.
I havent heard that expression since I stopped trading interbank FX .... term refers to using a Reuters Dealing machine and hitting the wrong keys ... the Reuters Dealer dznt allow U 2 go back and correct any mistakes and the text appears instantly on the counter parties machine... If u type FF or "Sry Frds Fat Fing" they will more then likely let u slide.....but thats not to say that all dealers will always be as charitable.
On another thot .... Fat Finger mistakes in the globex FX can b classified under the heading of Tuff Shit and u own it or sold it .... Have a nice day