Phone Trading

The forex trading market is a specific market and as with many other financial markets, has its own language and practises. To trade correctly within the online forex trading market, reading the following pages will enable you to learn what words should be used in specific circumstances. The pages below deal with how an actual currency trading conversation is dealt with over the phone.

• Trader x contacts the ADVANCED-FOREX dealing desk to ask for a two-way quote for a particular currency. He or she must specify the size of the transaction. "I would like a Dollar Swiss quote for 1 dollar please" or "I would like a quote for 1 million dollars against Swiss franc".
• If the ADVANCED-FOREX dealer knows that trader x is a regular dealer then he will most likely respond, "87-90" if not he would quote the whole figure "1.5587-90". It is generally assumed that the "big figure" (that is, 1.55) is already known.
• Trader x then has a short time to decide whether he wants to buy, sell or ask for a requote. Bearing in mind that in a fast-moving market the trader must respond quickly, within a matter of seconds, otherwise the dealer cannot be held to the quote he has given. If the price changes the dealer will say "off" or "change" which means that the price quoted previously is no longer valid. After the dealer says "off" he will immediately quote a new set of bid and ask prices. Assuming that trader x was indecisive and consequently the dealer "offed" the price quoting a new price immediately thereafter.
• The dealer quotes "89-92" and trader x chooses to sell. In this case he has several verbal alternatives at his disposal. Trader x can either say " I sell", " mine at 89" "89 sell". After a second or so the dealer will respond either "done at 89" or "you sold at 89" and will confirm the transaction by saying either "I confirm you sold 1 million dollar against Swiss franc at 1.5589" or "confirm I buy 1 dollar from you at 1.5589 ".

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