Transparency of FX quotes

Discussion in 'Forex' started by pers, Nov 19, 2019.

Is the statement accurate in this day and age?

  1. 100% accurate

  2. Mostly accurate

  3. Mostly INaccurate

  4. 100% INaccurate

Results are only viewable after voting.
  1. pers


    This is an excerpt from the very reputable book "Trading and Exchanges." Is this statement still relatively accurate (book published in early 2000s)? I'm particularly interested in contrasting quotes transparency in FX markets to that in futures markets. I realize the last paragraph is the author's projection about this but I'm interested in knowing how this transparency fared since then.
    Image_1 2019-11-19_15-32-24.jpeg
  2. qlai


    Excellent question. Was curious myself. I suspect it's somewhat similar to upstairs trading where real size is still done over the phone.
  3. traderjo


    The way I see it is perhaps it has to do with the built in leverage and notional value
    Where as with shares transactions ( as settled, not day trading) actual cash needs to be there and changed hand
    Hence the total "volume" of Margin traded FX would be more than equity
    so for example
    A FX broker can say on my internal book 100 million of USD EUro was traded today .. in real (assuming 1:100 leverage) all that is needed to "Claim" 100 million turnover is 2 Million dollars of ACTUAL money , 1 Million with the buyer and 1 Million with the seller
    All the "Broker" does it Mark to Market each side
    Where as for a "Exchange to claim that 100 Million of say MSFT shares were traded over last few days actual 100 million need to change hand.

    Correct me If I am wrong
  4. Variss


    I also find that transparency in derivatives markets including futures is lagging in transparency. It might be because these are not only traded on regulated exchanges but there are many institutional traders who do not publish information about volumes
    Onra likes this.
  5. comagnum


    This chart is based on the settlement or cash value - not the notional. The Fx market dwarfs the futures & equity markets.

    IAlwaysWin and nooby_mcnoob like this.
  6. maxinger


    I doubt the forex market data can be trusted.
  7. comagnum


    The forex market size is based on trading settlements calculated by more than one central bank. The worlds traded money supply being far larger that what is speculated in futures & equities markets should not be hard to understand.
    Last edited: Jan 13, 2020
  8. IAlwaysWin


    Do you trade Forex?
  9. maxinger


    I don't trade forex.
    I traded forex decades ago.
    You can't get reliable volume based chart for forex.

    Now I day trade currency futures.
    I can get reliable data feed from say CME to plot volume based chart
    Last edited: Jan 13, 2020
  10. IAlwaysWin


    I'm about to dig into learning more about futures. It's a little bit of a learning curve, have to find the time and patience for it though. I do love Forex, it's easy money.
    #10     Jan 13, 2020