FX Spot Trading
Is FX Spot Trading a good desk to be at at a bank like Citi/DB or would it still be best to go with a desk that is more 'technical'?
I know that's a vary vague question but by 'best' I mean in terms of learning, prospects and salary potential.
Thanks!
No, it's not good, especially now...
Can I ask why?
FX Trading, in particular Spot Trading is currently in a period of transition. This period of transition comes in 2 forms - cyclical and structural.
In the cyclical form of transition, firms are cutting costs within the global markets as consumer demand has thus far been unable to match up to pre-crisis levels. With costs rising banks turn to the easiest way to reduce costs - firing. This in turn results in a hiring slowdown as there is simply less need for a large pool of analysts annually who contribute minimally to the firm yet take up a considerable proportion of their costs.
The structural form of the role can be seen as technology begins to take spotlight and replace human traders. The reason for this? Once again, costs. In addition to it being a cost cutting measure, technology helps reduce losses stemming from issues such as human error, reaction time and what not. In addition, the volume of consumers integrated on FX trading platforms such as Barx, Autobahn and Citi Velocity are only going to rise. You may run a google search on FX Traders facing extinction for a more comprehensive explanation
Hope this helps a little :)
FX spot is a business with already exceedingly thin margins and even those margins are eroding as we speak. The other sources of revenue are being stamped out by regulators and courts. All this implies that the FX dealers are getting squeezed from all directions and it's been very painful for most FX desks from what I have heard.
i am a retail forex trader with extremely well technical analysis price action trading with 6 years experience. I wish i can get job in firm that trades SPOT FX. In my research, i come to learn to get a job trading forex for a bank is given to those who know people on the inside. It is almost impossible to get a job as trader for bank unless you have some algo thats beating the market consistently.
That's a ridiculous statement you can easily get to FX through S&T programs at firms that have a lot of FX business.
Yeahhhh you have no idea what you're talking about...
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