The group's focus aims to provide FX traders a nuetral community to discuss the FX market. The Los Angeles FX Group ranks in the top ten worldwide for investment meetup groups. We have an extensive knowledge base of the FX market, and cover many aspects of trading. If you want to trade, then this is the place for you. A word of caution: If you're looking to advertise or solicit clients, go somewhere else, because you will be removed from the group. To the new traders with good intentions: we provide a pure environment for discussing the FX market and other asset classes as well. This is a professional organization, and we aim to act accordingly so you can trade another day.
Summary of the FX Market, Structure, and Tips
The Foreign Exchange market, also referred to as the "Forex" or "FX" market is the largest financial market in the world, with a daily average turnover of US$4.0 trillion.
Spot, forwards, futures & swaps make up the bulk of foreign exchange trading. Close to 70% of all currency trades take place during London and New York trading hours. Tokyo, Hong Kong, and Singapore trading hours complete another 20% of trading, while Sydney and Wellington trading hours make up the remaining 10%. It's a 24 hour market from Sunday 5:00pm through Friday 5:00pm Eastern Time.
Unlike the Equity (NYSE) and Futures (CME Group) exchanges, the FX spot market is an over-the-counter trade, and therefore does not trade on a central exchange. Instead, most currency trades are conducted at the interbank level. This interbank market consists of hundreds of international banks that trade between each other, however, only a dozen or so of the largest banks in the world actually account for the massive volume and trading activity. Interbank trades are primarily executed electronically via EBS or Reuters. These two interbank platforms are used exclusively by the banks and have the deepest liquidity.
The top liquidity providers in the market include: Goldman Sachs, Deutsche Bank (the largest FX dealer), Citigroup, UBS, JP Morgan, RBS, HSBC, Dresdner Kleinwort, Morgan Stanley, Bank of America, Credit Suisse, and Barclays Capital. These liquidity providers are present on most of the leading FX trading platforms.
Most new traders are attracted to the retail trading firms with their no commission trades, and low entry capital requirements. Use caution with these firms because most of them are expensive, and do not provide the layers of protection your capital should have. Reputable clearing firms and introducing brokers provide the best avenue for traders accessing the multi-bank portals and clearing trades. These firms offer traders the best platforms, liquidity, and exchanges around, and transaction costs can be considerably lower than your broker. Many retail broker platforms are poorly designed, and have a questionable history.
The FX class offers many opportunities for traders, and has many pitfalls for the non-skilled trader. Please come by and see if this market can help you in your quest for Alpha. If you have trades you would like to share, please come by. We currently meet at the offices of Global Futures in Tarzana, California, with RDS Trader president Mike Radkay giving his views on the market, as well as great stories from the trading pits of Chicago.
The Los Angeles FX Trading Group