%%FX IV

Q772: does your system give your clients margin accounts? Do you let clients margin-trade FX options, FX futures or FX spot?
Q1802: is your system Retail-facing or Institutional-facing, an interbank trading system or prop trading?

Q: since NY traders often need to hand over the book to Tokyo traders, do they have different base currencies in their respective trader accounts?
%%A: Tokyo has a caretaker/baby-sitter trader for each NY account.  He babysits for the absent parents.

Q1234: how do you detect tri-arb (Triangular Arbitrage)? Both Outgoing quotes by your traders and incoming quotes need to checked? http://forexmentalist.com/forextrading/forex-arbitrage-trading-a-short-lived-trading-strategy/ is an introduction.
Q987: what live feeds do you use?
Q2323: typical size of your trades?
Q8792: how many cross currency pairs are actively traded on your system?
Q623: Beside the crosses, how many currency pairs are actively traded on your system?  Do these pairs always have USD as one of the 2 currencies?
Q: how many users do you support? Do they use website or WPF or swing or Quartz GUI?
Q: which ECN or interbank trading venues do you connect to?

Q: what’s the typical bid/ask spread on a non-cross currency pair?
A: 2-3 pips for top tier clients, and 20-40 pips for retail. I believe the dealer makes little if any profit on these trades, but they make more from the clients on other deals such as FX fwd, options or lending.
A: 1-2 pips for EUR/USD.

Q: is your system buy-side or sell-side?
(I believe fund managers, asset management firms are all buy-side. I guess Retail online trading websites are probably buy-side too.)

Q: typically how many percent of the trades are voice trades, and how many percent electronic?
(I know many big banks still have voice trades.)

Q: how many types of FX options are processed in your system? Barrier options, Binary options.
Q: what’s the process of FX option trading?
Q: what’s no dealing desk?
Q: what’s ledger balance?
Q: for a fx option, What’s strip? Strip leg?

A1234 (from a veteran): checking the quote frequency of crosses. for example, if EURJPY update rate is the sum of EURUSD update rate and USDJPY update rate. then that could mean one is using EURUSD and USDJPY to make market on EURJPY.
A772: I have seen real examples of retail traders using 50:1 leverage in FX spot trading, but not sure about institutional clients.
A8792 (Piroz): 5. Most of the active pairs are non-crosses.
A8792 (ZJW): 20-30 is common, and often high volume
A623 (ZJW): 200 – 300 is common in a large bank
A1802 (P): Inst sell-side system with about 700 web users.
A987 (P): Bloomberg, FXAll, Reuters
A987 (QEMS): Bloomberg

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