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Commentary

John Turney
Traders Magazine Online News

Foreign Exchange Infrastructure: Yesterday, Today and Tomorrow

In this exclusive to Traders Magazine, John Turney, Global Head of Outsourced FX at Northern Trust, discusses the evolution of the fx infrastructure and what is to come.

Traders Poll

What is your favorite movie about trading?

Wall Street

23%

The Big Short

13%

Margin Call

6%

Equity

0%

Trading Places

38%

The Wolf of Wall Street

8%

Boiler Room

7%

Arbitrage

0%

Too Big to Fail

5%

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The first 30 minutes can be the most vital part of the trading day.

The most vital part of the day can be the first 30 minutes after the market opens but you have to balance that activity against a stock’s historic trading pattern. This short video shows why this balancing act is so important. Check out the other Bloomberg Tradebook videos below. For more information, visit www.bloombergtradebook.com.

Q&A

Q: How does an algo know how to split up an order to seek a best price?

A: Algos need the necessary data—a stock’s estimated trading volume, the day’s trading conditions, and how much trading has happened already—to make that determination. With that information the program behind the algo will be able to decide how best and when to dice up a large order into smaller pieces.

Q: Is it worth waiting 30 minutes before trading on any given day?

A: There is a lot to learn about any given day from the first 30 minutes of trading, however waiting for that information to accumulate might come at the expense of trading at an optimal price for the day. Traders always need a balanced approach, but they can use tools like Bloomberg Tradebook’s Strategy Analyzer or STAZ that are available on the Bloomberg Professional® service before the open and 30 minutes after the open. This tool will show them estimates for key market information such as estimated remaining volume and auction volume using all the market data available to seek the best estimate.

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About Insight Bites in 60 Seconds

When it comes to stock trading, so much is changing so quickly that it’s difficult to understand and manage all the variables. Whether it’s algorithmic trading, price swings or dark liquidity, The Insight Bites series presents smart and concise snapshots of what a trader can do to address and overcome the most pressing of these challenges. Hosted by Traders Magazine and brought to you by Bloomberg Tradebook, each 60 second animated video provides quick and humorous insight into a unique issue that traders face every day. For more information, visit www.bloombergtradebook.com.