Phone trading


Phone trading terminology

The following page deals with how an actual currency trading conversation is dealt with over the phone.
Trader x contacts the ACM dealing desk to ask for a two-way quote for a particular currency, he 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 ACM dealer knows that trader x is a frequent dealer then he will most likely respond, "87-90" if not he would quote the whole figure "1.5587-90". That's because it is generally assumed that the "big figure" (that is, 1.55) is known.


Trader x has a short time to decide whether he wants to buy, sell or ask for a requote. Bear in mind that in a fast-moving market, unless he responds promptly, in a matter of seconds, 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 beforehand is no longer available. After the dealer says "off" he will immediately quote a new set of bid and ask prices. Let's assume that trader x was indecisive and consequently the dealer "offed" the price quoting a new one straight after.


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