For years, the concept of “best execution” in the currency market has been a low priority among many investors. The primary reason is that OTC FX was not considered a “security,” so technically the best execution language in Reg NMS did not apply.…
Tag: fx best execution
Three Best-Execution Strategies for Vanilla FX Options
1. Always Exchange Delta If you are using vanilla currency options to express a directional view in the underlying, there is one thing you should know: Nothing will light up your FX Salesperson’s eyes more than hearing the words, “please execute live, no delta exchange.” Here is an example: You are buying €100 million, three-month…
35 Ways Your Watch Can Lower Currency Trading Costs
“Are you telling me that my watch knows something that I don’t about foreign exchange?” Not technically. But your timepiece can be a powerful ally as you seek to reduce transaction costs incurred when executing trades in the 35 most widely traded currency pairs.…