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International markets and foreign exchange operations - Savluk M.І.

10.6. The practice of placing land on the market for streamline conversion operations. Orders that are stalled on the market for conversion operations

In practice, bank dealers can be accommodated by phone or for Reuters Dealing, an additional transaction system. If you are pleased to call by phone, the main parameters of the dealer will be handed over, reminiscent of the tiket titles. When stacked, please follow the Reuters Dealing Help to form automatically. Tiket is a papier of signified form; For leather surgery, the dealer has a VIP account.

Main parameters please, negotiate with dealers:

  • sum and currency of operation;
  • a course of health;
  • currency date
  • The main payment route and requisites of counterparties.

As dealers have appealed for the sake of thinking over the main requisites, then you can only pay for the other side.

Transactional Reuters Dealing system allows me to arrange and negotiate in a two-way mode with two-way banks. Leather Bank, a є Correspondent of the Reuters Dealing System Company, is the only one that has a number of black and white codes. At the moment, there are more than 6,000 banks, brokerage companies from foreign countries, and participants in the dealing system.

If you can see the power of kotiruvan for an additional dealing system. For example, the AAA Bank has been supplying quotes for the Japanese dollar to the US dollar for 100 million є. Win may write (put the ensign):

  • USD / JPY 100 JPY;
  • 100 JPY AG USD;
  • 100 JPY.

Zazvichai value of the US dollar as the base currency in the power drop, if you want to be powered by quotation of the cross-rate, then I will get involved in the base currency, and the currency of quotation.

For example, to a can of YYY 04/20/2001 p. need to buy 2 million British pounds sterling for American dollars in a DDD bank. Below you can see the dialogue between them, we’ll have to talk (we’re talking to you in English for the Reuters Dealing system):

# GBP / USD 2

(powered by YYY Bank quotation)

1,5890 / 94

(quoted to DDD jar)


(YYY bank buyє GBP)


(bank statement by DDD )

VAL DATE 22 / APR / 00

(currency date)

MY USD TO ... ....... (requisites for US dollars to DDD bank)


# VAL DATE 22 / APR / 00

# MY GBP TO ... ……… (requisites and payment to the bank for English pounds sterling for the bank YYY )

If you are trying to earn money like “GBP / USD 2”, then there’s a show that the market taker will be powered by a quote of 2 million base currencies. When you feed a quote on a sum of currency, a quote, for example, for 500 000 CHF, is trying to run down with "0.5 USD / CHF", but "0.5 CHF" is turned down.

In Ukraine, the main oath of conversion operations of the attack on the US dollar.

The main things you can see are: “1 UAH TOD”, “0.5 UAH TOM”, “UAH 2 TOD”, UAH 0.2 TOM ”. Wash “1 UAH TOD”, “0.5 UAH TOM” means that the market-taker will be worth UAH 1 million and UAH 500 000 to the US dollar on a regular basis with the date of the currency change tomorrow. “Praportsі” “UAH 2 TOD”, “UAH 0.2 TOM” mean that the market-taker is powered by quotation in the market-maker for $ 2 million. USA і 200 000 USD to Ukrainian hryvnia відповінно with the date of the currency of the current year and tomorrow.

The figure is to get used to name the currencies, then I’ve got the amount of currency in millions. As a matter of fact, eating quotes on a bag of currency is less than one million, so that you can sign up with a ten-decimal fraction, for example:

“USD / DEM 0.5” or, omitting zero, - “USD / DEM.5”

When you feed a quoted exchange rate to a mid-market sum, most currency drops by the hour. If you have a bank, which is right, I want to buy, but to sell it, I will be reserved for the most valuable currency, for example:


2.01 54-59


I BUY 2 MIO USD AT 2.0154.

At the same time, the bank, who is quoted, is guilty of acknowledging that if you can be sure to pay the sum between the limits set for the bank, you will be charged the course, and the rest is not guilty of being ill with the sum. If you supply funds without summing up the currency, as well as the amount is also completely transferred, I transfer the limit to the counterparty, the bank can be very sensitive, having entered the payment sum to the counterparty bank, for example:

# USD / UAH 5

5.4850 / 4950 IN 2

# OK BUY 2 MIO USD AT 5.4950.

It is often more common in practical banks to carry out one day at a time for a day’s operation, and in them they will win the payment in the same currency. In order to change the operating credit and the credit for the economic hour, banks are free to borrow on the basis of netting.

Netting - a loan of loans and a bank by partner banks for skin currency, for which operations are carried out. I’ll pay more for the skin date of the currency exchange, I’ll designate the hour and place of foreign exchange by banks. When tsomu:

a) sums, which are paid by one and the same bank in the same and the same currency, with the same and the same date of the currency, may be paid;

b) the sum of goiters — one bank in one currency in one currency is overwhelming; I overturn the sum of goiters — one bank in one bank in all currencies;

c) the most irrelevant sums of paid payday loans in the same and the same currency as the date of the currency is set to one for one, the loan is free without any losses.

Butt. AAA Bank zrobiv kіlka operations:

1. Having bought from the bank BBB 5 250 000 dollars. Against the Canadian dollar for the course of 1.5676.

2. Selling a bank to the bank 5 175 000 dollars. for the course of 1.6156 against the Swiss franc.

3. Selling 6,500,000 Swiss francs for Canadian dollars at a rate of 0.8945.

AAA Bank


US dollar

Canadian Dolar

Swiss franc


+ 5 250 000 USD

- 8,229,900 CAD


- 5 175 000 USD

+ 8 360 730 CHF


+ 5 814 250 CAD

- 6 500 000 CHF


+ 75 000 USD

- 2 415 650 CAD

+1 860 730 CHF

Thus, the AAA Bank will not be flown out with the BBB Bank with higher amounts for transactions, but with lower net amounts for netting results, it is important to significantly reduce the risk of unreasonable payments and the promotion of payment. AAA Bank to pay 2,415,650 Canadian dollars and income of 75,000 dollars. USA і 1 860 730 Swiss francs in bank of BBB .

There is a clear vision of conversion operations in the United Kingdom of the Reuters Dealing Transaction System. Це - the text of the negotiations and formations on the basis of “Tiket” for the conversion of land between the two contractors. A reassurance in both counterparties in the text of the negotiations, the reliability of which is guaranteed by the Reuters, the guarantor of the vision of pleasing. At the time of the one and the same way, please, laid down for another diligent installation, the other side can bring up their innocence by presenting to the court their copy of the text of the negotiation appendix. Bank Ukraina has a conversion of 100 million Japanese transactions with its counterparty, Comerzbank, Frankfurt, 22nd

Dealer for Ukraine Bank having turned around to a dealer for Comerzbank for the foolish date of USD / JPY quotation for 100 mln:: “100 JPY”. From my house, a dealer at Commerzbank, who had placed a second day quotation of “111.18 / 22” on the minds of a spot, and a dealer at Bank “Ukraine”, having bought 100 million Japanese заn for the US dollar at a rate of 111.18. Dalі dealers exchange the requisites for dowry currencies, such as to a bank and to a single banknote. The dealer of the bank “Ukraine” will order a bank card in Japan on the Bank of Tokyo, Tokyo, and the dealer at the bank Comerzbank will order a bank card in the American bank Bankers Trust Co, New York.

Often, the market-taker himself can’t go to the ruins of the foreign exchange market, but in the first place, there’s no way to do it, who wants to have a look at the Forex market. For the fourth weekend there is a market maker so called orders. The order is for the songwriter in the formulated and transferred order of the market-taker to the market-maker about vidkrittya i / abo closed position for singing courses at the reach of the specified rivnya. As a market maker, having accepted an order, then you don’t have the right to enter the offer, it’s only the market for the value of the specified price.

For conversion operations, it is important to win three kinds of orders - a market, a limit and a stop. Please, respect the derivatives market for orders more.

: SPOT WE BUY 100,000,000.00 JPY at 111,18


: give: 899,442.35 USD THU 24FEB2000

: BTC, NY ACC 04-053-870

: rcve: 100,000,000.00 JPY THU 24FEB2000


: Comment

: Comment

: 0ur User ANAT Terminal Controller BUKR



100 JPY

# ANDY> HI 111.18 / 22



# VAL 24FEB2000

# MY USD BTC, NY ACC 04-053-870



VAL 24FEB2000





Market order (market) - to find a higher order, to turn out to be only such parameters: currency, bazhan day (purchase, sales) and order about the end of the order for a flowing market value. Link warrants are welcome once and for all and be satisfied with the most amicable at the time of the weekend.

Limit orders (limit) set the highest price, for such a clearance admission, the operation will be closed. Such a favor, when possible, was carried out at a very low price, lower than that indicated in the order, but not at all for hrs.

A limit order for buying one's own way to find a price, for a certain type of purchase, it may be better, although a warrant may be used for a better price, it is generally possible. The price is indicated in the limit warrant for purchase, the price is lower than the minimum price at the time the order was issued.

A limit order for sales - I will specify the lowest price, for such sales I can give you more understanding, although I can give you a warrant for better prices for the price, I’m most welcome. The price is indicated in the limit order for sales, the maximum price at the time the order is issued.

Limit orders do not guarantee the weekend, the stink guarantees only those that are, however, the limit order is healthy, then the price of the ticket is higher, but if it is shortened, it’s not indicated in the warrant.

Stop warrants, please, to please your friend, it’s been easy to re-set the settings for the new price - stop price. Upon receipt of such a warrant, such an order shall be inactive until the moment the market has reached the declared price. Yak tіlki rinok dosyagє stop-price anyway to cross її, the order to close the operation and operation is not random for the best possible price.

Stop warrant for buying the food of the current market price and don’t get into trouble, the docks of the market price are not the same as the price assigned to the new market (at the Shid market). Stop order for buy at the time of activation of the old market order for buy.

Stop orders for sales - go lower than the current market price and don’t go round; the docks of the market price do not go down to the market assigned to a new market (in case of a short-term market). When there is such a stop order, a market order for sales.

On a vid vіd limіt-warrants, stop-orders do not guarantee the completion of the operation for the price fixed at the same time. It’s possible to stink out of contentment for price, for any reason, it’s lower in the warrant. Stop warrants for yak for entering a new position, so for closing it explicitly. Wanting to find a better view of the country - for zahistu іsnuyucho positsії (obmezhennya in the second and even for the sake of unrealized profit), stop orders can also be vykoristovatsya for the most beautiful position is very clear.

The trader is automatically guilty of recognizing a certain type of warrant for entering into a skin-specific vipadok, for the nobility, for the other side of the market, an order for small payouts (lower than one) and a certain type of payout order for gaining bazhenoy results.

Stop on buy, sell on sale is the main goal of a stream rivnya market (correct for GBP / USD and EUR / USD). Stop on sales and limit on buying prices for prices, lower types of current market prices (correct for GBP / USD and EUR / USD).

If you have special instructions for the dealer about buying earlier orders, you shouldn’t have any problems. Є three methods of skasuvannya:

  • Directly cancel (straight cancel) - to try to get the most out of the day, for no other reason than the trader needs. For normal minds, I also have to try to stop for stop orders, but they won’t blame them, and for limit orders, I won’t blame them.
  • Cancellation of the front order (CFO - Cancel Former Order) - a great instruction on how to save the front order with the new deputy immediately, for remember, before the warrant of warrants, there is no need for any delights.
  • One canceled (OCO - One Cancels Other) is the whole instruction with two orders, only one of them is guilty of a lot of pleasure. If you reach one of the statements of prices and visions of one of the warrants of another, they will automatically be skipped.

On the Forex market, staking warrants will be accelerated by the fact that there are two types of quotes - direct and inverted, which are difficult to get, the value of the “short” price or the “lower price”. Usa wladclade is the best choice for currencies from foreign currency quotations - GBP / USD and EUR / USD. For currencies from direct quotes: USD / CHF, USD / JPY, USD / CAD, the correct price is accurate to the full.

Self-control power

1. What is the bid and offer for quoted currencies and for different rates for buying and selling currencies for quoted market-maker and market-taker?

  • Spot rate CHF / DEM 0.8845 / 50 and market taker say : "I BUY 3.5."

Become familiar with the market maker:

a) by purchasing 3.5 million DEM against CHF;

b) selling 3.5 million CHF against DEM;

c) by purchasing 3.5 million CHF against DEM;

d) selling 3.5 million DEM against CHF.

3. Rosrahuvati cross-rate GBP / JPY, apparently spot rate GBP / USD = = 1.5350 / 53 and USD / JPY = 106.50 / 53.

a) 163.48 / 56;

b) 163.51 / 52;

c) 69.36 / 39;

d) 69.38 / 39.

4. Rosrahuvati cross-rate CHF / DEM, as a rule spot rate USD / CHF = = 1,6455 / 60 and USD / DEM = 2,0350 / 53.

a) 3.3496 / 01;

b) 3.3485 / 90;

c) 1.2363 / 69;

d) 1.2345 / 49.

  • What is also netting with bank practice?
  • Dealer for the day uklav decіlka please with open banks:

- with AAA Bank - having bought 1.05 million USD against EUR at the rate of 0.9663;

- with BBB Bank - selling GBP 2.5 million against USD at the rate of 1.5810;

- with AAA Bank - selling USD 2,345 million against CHF at the rate of 1.6545;

- with CCC Bank - selling CHF 3.0 million against GBP at the rate of 2.3256;

- with AAA Bank - selling 1.45 million EUR against CHF at the rate of 1.5835.

Rosrahuvati netting with AAA bank and dealer position for USD, GBP, CHF and EUR.

7. Dealer of the same operation USD / DEM:

  • having bought USD 1 million for the course of 2.0378;
  • selling USD 3 million at a rate of 2.0365;
  • having bought USD 1.55 million at the rate of 2.0332;
  • having bought USD 0.75 million at the rate of 2.0345.

Rozrahuvati dealer position for the US dollar.

  • The EUR / USD spot market maker rate is “0.9567 / 72” and the market taker speaks “SELL 3”. Now the course is changing and becoming “0.9543 / 48” and the market-taker closing its position. What is the side trick of the market taker?

a) - 7200 USD;

b) + 5700 EUR;

c) + 5700 USD;

d) - 8700 EUR.

9. Do yak warrants go to the market of conversion operations and the yak ikh role?