| | | | Trading Discussion /? | Reply to Thread | | First Post: Nov 17, 2012 8:04am (16 hr ago) | Edited Nov 17, 2012 9:12am (15 hr ago) | | | | hi guys is anyone here work at banks can explain detailed on how is foreign exchange from average joe is handled ? or anyone has information of it ? wiki said average daily turnover in global foreign exchange markets is estimated at $3.98 trillion lets say i'm a trillionaire and i have 8 trillion USD and i want to change it to EUR , i went to citibank and said to the teller i want to change 8 trillion of my USD into EUR . How is my money process ? will i crash the foreign exchange market with sudden move ? im really curious on how is my money handled thanks please reply |
| Nov 17, 2012 9:08am (15 hr ago) |  | Member | ? | |
| | Quote: |
lets say i'm a billionaire and i have 2 trillion USD ....
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1000 billion = 1 trillion __________________
Size does matter; Even in Forex Trading
 Initiated Nov 18, 2012 12:14am Horizon 5 Days (until Nov 23)  Initiated Nov 18, 2012 12:15am Horizon 2 Days (until Nov 20) Initiated Nov 18, 2012 12:16am Horizon 1 Day (until Nov 19) ? |
| Nov 17, 2012 9:11am (15 hr ago) | | | | Quote: | 1000 billion = 1 trillion |
you know what i meant , edited it anyway  |
| Nov 17, 2012 9:34am (15 hr ago) | | Member | ? | |
| | well for average joe, there is a rule in place according to which you need to inform the bank a few days/weeks earlier that you want to do a large transaction on x date.once informed the bank will arrange the amount for you from different sources. __________________
Size does matter; Even in Forex Trading
Initiated Nov 18, 2012 12:14am Horizon 5 Days (until Nov 23) Initiated Nov 18, 2012 12:15am Horizon 2 Days (until Nov 20) Initiated Nov 18, 2012 12:16am Horizon 1 Day (until Nov 19) ? |
| Nov 17, 2012 9:36am (15 hr ago) | | | | Quote: | hi guys is anyone here work at banks can explain detailed on how is foreign exchange from average joe is handled ? or anyone has information of it ? wiki said average daily turnover in global foreign exchange markets is estimated at $3.98 trillion lets say i'm a trillionaire and i have 8 trillion USD and i want to change it to EUR , i went to citibank and said to the teller i want to change 8 trillion of my USD into EUR . How is my money process ? will i crash the foreign exchange market with... |
That 4 trillion figure always make me laugh..
the actual liquidity in spot forex (what's available for trading) is much, much, much less than 4 trillion. It is so ridiculously small I always get funny goose bumps when I say it.
How about say no more than the liquidity in the wheat futures market?
Not much heh ):
How about that for a reality check (: |
| Nov 17, 2012 10:51am (13 hr ago) | | | | The $3.98 trillion break-down is as follows: $1.490 trillion in spot transactions
$475 billion in outright forwards
$1.765 trillion in foreign exchange swaps
$43 billion currency swaps
$207 billion in options and other products Not that small
__________________
"It's just not necessary to do extraordinary things, to produce extraordinary results." Warren E. Buffett
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| Nov 17, 2012 11:37am (13 hr ago) | | | | Quote: | well for average joe, there is a rule in place according to which you need to inform the bank a few days/weeks earlier that you want to do a large transaction on x date.once informed the bank will arrange the amount for you from different sources. |
so on x date my money will crash the forex market with sudden move ? we can see it on our chart ? Quote: | That 4 trillion figure always make me laugh..
the actual liquidity in spot forex (what's available for trading) is much, much, much less than 4 trillion. It is so ridiculously small I always get funny goose bumps when I say it.
How about say no more than the liquidity in the wheat futures market?
Not much heh ):
How about that for a reality check (: |
actually logically people exchange money more often than someone involve in the wheat industry Quote: | The $3.98 trillion break-down is as follows: $1.490 trillion in spot transactions
$475 billion in outright forwards
$1.765 trillion in foreign exchange swaps
$43 billion currency swaps
$207 billion in options and other products Not that small |
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| Nov 17, 2012 1:10pm (11 hr ago) | Edited Nov 17, 2012 2:00pm (10 hr ago) | | Member | ? | |
| | Quote: | so on x date my money will crash the forex market with sudden move ? we can see it on our chart ? |
the move is not sudden as you already informed the bank in advance that you need euros.the bank will start buying euros (gradually) everyday from other banks.if the demand temporarily exceeds supply you'll end up paying more $ for each euro.(bad for you) the ecb will then print more euros /cut rates etc to bring the euro down back to the normal level (bad for you gain) in the end you'll loose a few billion $.A crash is impossible imo __________________
Size does matter; Even in Forex Trading
Initiated Nov 18, 2012 12:14am Horizon 5 Days (until Nov 23) Initiated Nov 18, 2012 12:15am Horizon 2 Days (until Nov 20) Initiated Nov 18, 2012 12:16am Horizon 1 Day (until Nov 19) ? |
| Nov 17, 2012 2:13pm (10 hr ago) | | | | Quote: | the move is not sudden as you already informed the bank in advance that you need euros.the bank will start buying euros (gradually) everyday from other banks.if the demand temporarily exceeds supply you'll end up paying more $ for each euro.(bad for you) the ecb will then print more euros /cut rates etc to bring the euro down back to the normal level (bad for you gain) in the end you'll loose a few billion $.A crash is impossible imo |
so the move is not sudden but over days ? so that means even though i bought it on x date the agreed rate is not on x date but rates over days ? |
| Nov 17, 2012 2:28pm (10 hr ago) | | | | Quote: | The $3.98 trillion break-down is as follows: $1.490 trillion in spot transactions
$475 billion in outright forwards
$1.765 trillion in foreign exchange swaps
$43 billion currency swaps
$207 billion in options and other products Not that small |
And then retail traders, not just retail, take up about 2% of this. You have to take into account the retail broker, which facilitates the retail traders trade. If you had 8 trillion dollars, you'd be beyond the richest man in history, or trillionaires, quadrillionaires, quintrillionaires would probably exist. (But yes, if you were to suddenly dump 8 tril into the markets today, shit would get fucked up. Though, I doubt any broker would allow that, since they would be one of the top banks in the world.) |
| Nov 17, 2012 2:55pm (9 hr ago) | | | | Quote: | And then retail traders, not just retail, take up about 2% of this. You have to take into account the retail broker, which facilitates the retail traders trade. If you had 8 trillion dollars, you'd be beyond the richest man in history, or trillionaires, quadrillionaires, quintrillionaires would probably exist. (But yes, if you were to suddenly dump 8 tril into the markets today, shit would get fucked up. Though, I doubt any broker would allow that, since they would be one of the top banks in the world.) |
aren't broker included on spot transactions ?in this case i don't know any forex broker trading , i wanna know how the system work , say i have those 8 trilllion from business and i want to change from USD to EUR on citibank .... i wanna know how my 8 trillion affect foreign exchange market ... |
| Nov 17, 2012 3:05pm (9 hr ago) | | Member | ? | |
| | Quote: | so the move is not sudden but over days ? so that means even though i bought it on x date the agreed rate is not on x date but rates over days ? |
the "agreed" rate could be higher or lower than the spot rate.if you sign a Forward contract with a bank to buy x amount of euro at a certain agreed rate,on some future date then you are obligated to buy at that price. __________________
Size does matter; Even in Forex Trading
Initiated Nov 18, 2012 12:14am Horizon 5 Days (until Nov 23) Initiated Nov 18, 2012 12:15am Horizon 2 Days (until Nov 20) Initiated Nov 18, 2012 12:16am Horizon 1 Day (until Nov 19) ? |
| Last Post: Nov 17, 2012 10:14pm (2 hr 30 min ago) | | | | This thread is annoying on many different levels Not sure where to start really. __________________The Trend is a Trend
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| Source: http://www.forexfactory.com/showthread.php?t=395806
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