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Spot Forex Market

Spot Forex Market

Nowadays undoubtedly the largest market worldwide spot is the Forex market, which in fact is the largest financial market compared to any other. In this market the simultaneous exchange of the currency of a country is produced by another currency, such as euros per dollars, dollars per yen, dollars per pound, etc. The way this market operates is by trading with currency pairs like EUR/USD (Euro against the US dollar), consisting of a base currency and a counterparty currency or quotation.

After EUR/USD, another pair of fairly common currency in the Forex market is the GBP/USD (British pound against the US dollar). In this case, if the GBP is increasing its price against the USD (strengthened), then the investor buys hoping that the price will continue to rise. Conversely, if the GBP weakened against the USD (or in other words the USD strengthened against GBP) then the investor sells. The biggest benefit of Forex market is its high level of liquidity that allows investors to enter and exit the market at will.

Also to Forex, Spot Market can be defined as one of the main means currently used for currency trading worldwide. In the currency market, brokers offer two quotes buy / sell. These rates one for purchase and one for sale, the first being the price at which the broker is willing to buy foreign currency and the second the price which he is willing to sell. In this financial market, the difference between the rate buying and selling rate is called margin or spread, and constitutes much of the profits of a broker. In the spot market, currency transactions are immediate delivery (no physical delivery of money. In the spot market are made the most foreign exchange transactions both large investors (banks, companies, financial institutions, etc.) and among retail investors (mainly individuals with relatively small capital compared to institutional investors).
Why choosing a broker committed to Technology is a good Signal

Andres Salazar
Sales VP LATAM
asalazar@tvmarkets.com

The Client Focus in Brokerages

It has been over 24 years since I started my financial career in Mexico. Trading the proprietary account of one of the biggest financial groups down south.

I have had the great experience of working in NY for all these past 21 years and been exposed to the biggest market in the world.

The marketplace has seen amazing changes in technology, regulation, and products. The current marketplace has an amazing and diversified selection in asset classes, ETFs, Structured Notes, stocks, fixed income, options, futures, forex, etc.

It is really up to the broker to have a full set of professionals who can not only understand the needs of their clients but that can navigate the marketplace and provide them the most comprehensible tailor-made offering for their particular ends

I believe that the brokers who are evolving are doing so because they have their focus very well set. They focus on the client, and Tradeview has been able to use technology, regulation, structure, innovation, and people skills to focus on one and only one thing  — provide our clients with the best possible set of products and personalized attention from our sales experts.
Tradeview has invested a lot of time and resources focusing on how to innovate in all the aspects of the trading cycle and how to use technology to make the client experience better.

A brokerage firm really makes a difference when its core day-to-day operations are focused on its clients. Tradeview has a very detailed and specific process on the recruitment process for our new sales representatives. We believe that the core values of a well-educated team with a focus on giving clients their best will always bring results. There are so many brokers and choices out there and therefore we have to treat every client who has made the decision to work with us as unique and important

There are three magic components to a good brokerage – client relationship
1) Trust  – Markets are complicated and no one fully understands them or even can predict them – the honest approach to service is key for a trust-based relationship
2) Innovation – The bottom line is important to all of us, brokers and clients. Innovation allows us to cut our bottom line and be able to provide better products to our clients
3) Transparency – Direct transparent access to the market place is essential, clean and transparent pricing is also part of the client experience
4) Liquidity and Spreads – tradeview has a proprietary set up that allows the firm to provide clients with the best spreads in the industry and several points of liquidity

Tradeview has work hard to provide our network of clients the above mentioned and be at the forefront of the industry.
There is a lot of work ahead but keeping the core values of a broker-dealer is what keeps clients happy and trading.

Don’t just follow the markets
Check out what Tradeview customers have to say about us by reading their Trust Pilot reviews
Tradeview Markets Trust Pilot reviews

Chava Palma
SVP Sales
chava@tvmarkets.com

Discount Brokers VS Competitive Brokers

Discount Brokers VS Competitive Brokers

For several years the industry has been putting a lot of pressure on commissions and most of the brokers have been squeezed.

There are several platforms that promote themselves as a discount broker which has driven a commission price war but has left the brokerage industry and mostly the clients with what they pay for. Discount prices generally means a very limited brokerage service and no transparency about the real components of the cost of trading.

There are several documents and articles in regards to the cost of trading which could be grouped in the following

• Explicit costs – commissions, fees, and taxes.

• Market maker spread – difference between the bid and ask prices that the specialist sets for a stock; the specialist keeps the difference as compensation for providing immediacy. For less liquid stocks, the specialist has greater exposure to adverse price movements and likely will make the spread larger.

• Market impact – results when high volume trades influence the market price. Market impact can be broken into two components – a temporary one and a permanent one. The temporary component is due to the need for liquidity to fill the order. The permanent impact is due to the change in the market’s perception of the security as a result of the block trade.

• Opportunity cost – the effective cost of price movements that occur before the trade executes.

A Discount broker will show you very small commission and fees to attract your business but the reality is that the NON Explicit costs are much more higher and have bigger impact on your overall return.

A Competitive broker like Tradeview will make sure that the explicit costs are competitive and that the spread, market impact and opportunity cost are in total control and minimized with complete transparency

Tradeview provides clients with a competitive brokerage model across all explicit and hidden fees. The firm controls its own electronic trading environment with co-located servers, liquidity aggregators and STP process. At the end of the day a brokerage firm should strive to retain clients and give them all the tools and structure to be able to make a return in the market place. Nobody can guarantee a return but we can control the complete cost of trading.
Salvador Chava

Chava Palma
SVP Sales
chava@tvmarkets.com

Latency Matters

They say we are now around 7.4 billion people on this planet, so now more than ever and for anything in the future, the words “First come first serve” matter.

The arbitrage opportunities have always been present in our financial markets as fungible assets trade in different venues.

I was once an arbitrage trader back in Mexico in 1992 when Telmex (TMX) was the most traded stock in the NYSE. We will have a Broker at the Mexican stock exchange and another one at the NYSE looking at that price all day. One price in USD and one in pesos with a third variable – the USD -PESO spot. You could hear the screams all over the trading floor when the price changed and an arbitrage opportunity arose.

So Imagine

How markets have changed in the terms of access, technology, and processing that today there is a server co-located at each exchange monitoring decimal changes and firing thousands of orders for arbitrage opportunities across all asset classes.

Latency has been a very discussed topic across our industry and it has changed the game several times.

The forex marketplace now has been evolving and latency matters more than ever. The challenge is very big as there is no central place for trading. Liquidity providers, ECNs, brokers, banks, and providers are preparing for the speed revolution.

Tradeview has invested a lot of resources into the Latency game in three different aspects.

  • Servers and Location: The firm recently made changes in our servers’ location and characteristics, by being in proximity to the liquidity pools and having a central location that is strategic.
  • Technology: The firm has revamped its Liquidity Connector and placed it accordingly to its strategic partners.
  • Liquidity: The firm continuously works on improving the liquidity on its platform which ties into impacting the clients’ bottom line

GBP USD

Chava Palma
SVP Sales
chava@tvmarkets.com

Transparency is the New Black

There has always been a fascination with numbers and comparisons have always helped to put things in perspective.

Regarding the marketplace, there has been a very interesting evolution of transparency. Regulators, Brokers, and technology firms have spent millions of dollars and resources trying to catch up with this fast pace change.

Each asset class has its own trading cycle details, information, dates, data, and challenges. The Forex market is playing catch up as it relates to transparency and regulation.

In a world where “Size Matters” let’s just throw in some interesting numbers:

Market Size
NY Stock Exchange 30 Billion
Total Equities Market 200 Billion
Futures Market 450 Billion
Forex Market 5.6 Trillion

So the biggest market in the world happens to be less regulated and transparent. This is exactly why you need to choose the right partner, broker, technology, and strategy in Forex.

I have worked in the industry for over 25 years and have been exposed to many aspects of the trading cycle across several asset classes. The Forex market represents a big challenge for the industry and for end clients as well.

Transparency will be your friend across several points of the trading cycle.

  • From the process of opening your account to the full disclosure about the broker-dealer products and services.
  • From the process of funding your account to the withdrawal process.
  • From the access to pricing and spreads to the functionality and reliability of the trading technology.
  • From your online access to your account to the detailed disclosure of fees and commissions.
  • From the broker-dealer’s marketing material to the reputation of their workforce

Transparency Is The New Black
Make sure you pick a broker-dealer that has transparency as their business model!

Chava Palma
SVP Sales
chava@tvmarkets.com

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GBP USD

Intraday Types of Forex Strategy

Intraday transactions refer to entering and exiting the market many times in one day. This strategy can be profitable and requires very fast while you can implement it at any time. Traders transacting within a day (intraday) try to get a large number of small profits by exploiting the daily volatility of the forex market.

These intraday investors entering and leaving the market many times during the day. The risk is low in intraday transactions because they involve positions held only for a short period of time. However one of the disadvantages of this type of strategy is that the gains in each of these transactions are relatively small.

Intraday Strategies based on predetermined ranges 

The key for intraday transactions is to identify a seemingly asleep market, a market that is looking for direction. In the absence of important news, a couple of coins generally fluctuate in a range of 10 to 30 pips. This type of traders who transact within the same day is not interested in the news.

When an unexpected event occurs and it affects a currency is invalidated the range in which it was negotiated. Much so that, this type of traders, not having an opinion about the direction of a currency is fixed when there will be scheduled to avoid transactions during those times news.

Intraday Strategies based on events scheduled

On the other side are the traders who transact within the day but want to hear the news. The largest and most lucrative foreign exchange movements come along with news and economic events. Each day, different countries publish economic, such as employment data, inflation, and retail sales among others.

This data often determine the direction of a currency that day. Economic data are difficult to predict, but with good research and instinct for the market, you can sometimes get a big advantage. Identify a trend in the market is an excellent way to operate with economic data. Often a currency may be more vulnerable to a high impact announcement that was not expected, that one yes was waiting.

Important

The important thing here is to have an instinct for the currency that is intended to trade. Before ads, the currency may be near a technical value or psychological value. In other cases, a coin may have already had a very strong movement and running out of momentum. Economic data can trigger a change in the trend too. A good strategy for intraday transactions is difficult to implement it is to operate quickly with economic data. These are published at the same time for everyone in the market. But still, there are traders who use programs called “robots” reading economic data points and transactions executed instantly.

When trading Forex, you begin to perceive what indicators are most important. As a rule, publications, employment, inflation and interest rates are most influencing the market. There are different strategies for intraday transactions. No matter if you are exploiting market volatility or operating with news and events, learn how to interpret economic data and improve the results of their intraday transactions.

Jose Pino Monsalves
Business Development Manager – Tradeview
jpino@tvmarkets.com

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Why Choosing a Broker Committed to Technology is a Good Signal

As markets evolve technology has always played a vital role keeping up with regulation and profitability.

Coming from a listed markets experience and background it has always been very important to provide our customers with a technology platform that would give them value added services and at the same time been compliant with the always changing regulation and compliance component.

The words reliability, access, latency and colocation are now a day to day part of the FX world. Which is heavily investing in technology on a constant changing environment.

Even though the FX world is a different animal, as it is very fragmented and not that regulated you have to always keep a close eye in technology and make sure you associate yourself as a client and a broker with the firms who are on top of their technology game.

One of the key factors to look at is that technology would not only give clients added value but it would also have the broker providing the technology services to be completely committed to their game. Once a broker decides to invest in technology there is no backing down, it will always have to find added value, new services, new vendors and new structure.

As the market evolves and the key components of access, reliability and latency become FX daily themes brokers will have to make the comparison among different solutions, brokers and platforms.

Technology promotes sophistication among all the players, clients and brokers step up their game once they understand the impact of technology and the trends. Brokers on one side, if they are serious, would spend time , money and resources setting up their whole infrastructure (servers, applications, aggregators, feeds, liquidity, etc) and clients on the other side now have plenty of information about technology trends.

As technology evolves so do we, investors and brokers, markets and vendors, platforms and algos. We are all part of the moving FX market place and as a broker it is always important for me to be associated with a broker who is committed to their technology services and is looking for the next big thing.

STP (Straight Through Processing) was always a target for me as a Chief Operating Officer. The integration of the trading cycle – pre-trade, trade and post trade technologies are key for an efficient broker dealer.

In the FX world now – everything matters – the integrations and platforms that enable clients to open accounts and fund them – the trading platforms and algos that give them added value – the reliable service and access to the market place – the liquidity aggregators that control the spreads.

So at the end of the day – technology matters because it has an impact in the bottom line.

Chava Palma
SVP Sales
chava@tvmarkets.com

How to measure risk in Forex

It seems incredible, but sometimes the simplest things can be the most difficult to accept and understand. While working in this exciting world of trading, I’ve met many people who have no idea how to manage an account, whether demo or even worse, a real account. I’m writing this article to shed light on how to work towards managing your risk.

Forex trading should be simple. Undoubtedly, those who make it difficult are usually the ones who have never traded the markets or been properly taught how to trade. Many first start with a demo account. It’s the best choice as a beginner and is offered by a broker. The first thing to do with a demo account is to “play” with it. The term “play” refers to meaningless trades and worse when they compare it to a casino, gambling in every trade and choosing a side. The beginner also risks amounts that have nothing to do with the reality of a real account.

Read more in Finance Magnates

Andres Salazar

asalazar@tvmarkets.com

Our thoughts about Gold and Silver

GOLD chart
Comex Gold

On Friday July 27 in London we look like Spot gold closed at $ 1.081 US dollars per ounce, thus falling to 4.6% following the previous week which also fell 2.3%. base on the previous events, this situation does not look good for the gold. Experts project that it can reach $ 1,000 an ounce in the upcoming weeks. Their best advice is to probe the short side on any good short covering rallies that develop from time to time. We don’t certainly expect to see some short covering anytime soon. In the short term the market will find a support around $ 1,070 while there is strong resistance around $ 1.105 to $ 1.110 an ounce level basis spot.

It has always been known for the dual nature of gold as a currency and a commodity as of today, it’s not seems as both. The extreme drop in prices has taking it to a five-year low which it can decline even more. Although shorts will eventually have to cover, some investor’s confidence should return to the market post a fed-hike, which means profits will be slower to than previously thought.

Monday’s fall, correlates to strong selling on the Comex futures and unreasonable to attribute it to any immediate change in fundamentals. But it is undeniable that in recent weeks some of the best remaining hope for rising gold have evaporated.

In the worst case, when the dollar appreciates by another 20% and Treasury yields return to 4%, the price of gold could easily fall to $ 850.

Our base case assumes that further dollar gains will be limited and that the drag from gradual Fed tightening will be offset by a pick-up in demand from consumers and central banks in emerging markets.

Best scenario is that further dollar gains will be limited and that the drag from gradual Fed tightening will be offset by a pick-up in demand from consumers and central banks in emerging markets.

Silver

silver chart
silver chart

Silver has not been the talk of the week.

Silver fell 3.5% last week after falling 2.8% in the previous week. Silver has lowered its price range relative to gold sharp move lower. The support is seen as $ 14.30 in spot area basis while resistance above is around the level of the base $ 15.80. At the current level of support will be crucial if broken would look $ 13.70 as the next strong support level.

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.
Website: www.tradeviewforex.com

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.
Website: www.tvmgloballtd.com

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.
Website: www.tradeview.eu

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.
Website: www.tradeviewlatam.com