Stops are an important risk and trade flow management tool, especially in managing books of smaller FX trades spread across multiple venues and counterparties.
As trading has become more electronic and automated, stop-loss orders have become even more useful and this trend is likely to continue into 2019, especially for market participants with an interest in currencies such as the yuan and the Turkish lira, which are expected to fluctuate significantly next year.
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Brad Bailey, |
Automation demands better use of stops, particularly in a fragmented, smaller trading size environment, explains Brad Bailey, research director with Celent’s capital markets division.
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