pricing - page 6
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I wonder how much of this is roughly the total volume of forex trading? I mean this process is unpredictable?
What do you mean? This IS FOREX! Forex lives ONLY on correspondent accounts! There is no other way to buy or sell currency in the world! The client just does not see it. The bank may sell the client a currency from its free credit funds, if the situation in the correspondent accounts is favorable, in which case such a transaction is NOT visible at the interbank market at all. The bank simply "sees", I repeat "sees" the exchange rate and sets to the client the price, which was at the interbank market at that moment. And only if the order is large and the bank cannot cover it, or it is not profitable, or its correspondent account requires a skew EVERYWHERE - only then the bank will enter the interbank with this client's order.
Understand at last that at big banks like UBS or Deutschebank - all or almost all clients' currency purchase orders are counterbalanced (and covered) by internal clients' currency sales orders. It is much easier AND cheaper to cover an order than to go to the interbank (internal posting, from one client to another, who do not really see each other and think they were bought currency in Australia, although it was in the same Odintsovo).
1. I clearly said that it's not bank 2 that's going to get stuck, it's the central bank that's going to get stuck.
2. large volumes come in tranches. always :)))
"The central bank rarely gets involved and it won't understand anything there."
Don't... The central bank does a hell of a lot of poking around. Because there are currency controls...
+ the bank is required to report large transfers for anti-money laundering ... ... The Central Bank will give you a "big bonus" for breaking the law! ))
And anyway - what the fuck does it have to do with cor accounts and "bullshit" in pricing? You just said it yourself... If there is a large withdrawal ... then the bank may buy currency on the market ... => demand grows, bona fide ))))... and it has nothing to do with corrupt accounts. It's a mechanism for transferring money in banks.
What do you mean? This IS FOREX! Forex lives ONLY on correspondent accounts! There is no other way to buy or sell currency in the world! The client just does not see it. The bank may sell the client a currency from its free cash, if the situation in the correspondent accounts is favorable, in which case such a transaction is NOT Seen AT THE INTERNATIONAL BANK. The bank simply "sees", I repeat "sees" the exchange rate and sets to the client the price, which was at the interbank market at that moment. And only if the request is big and the bank cannot cover it, or it is unprofitable for it, or its correspondent account requires skewing HOWEVER - only then the bank leaves on interbank with this client request.
Understand at last that at big banks like UBS or Deutschebank - all or almost all clients' currency purchase orders are counterbalanced (and covered) by internal clients' currency sales orders. It is much easier and cheaper to cover an order than to go to the interbank (internal posting, from one client to another, who do not really see each other and think they have bought currency in Australia, although it was in the same Odintsovo).
>> that's a no-brainer. Come up with something new... it's not new to us.
What do you mean? This IS FOREX! Forex lives ONLY on correspondent accounts! There is no other way to buy or sell currency in the world! The client just does not see it. The bank may sell the client a currency from its free resources, if the situation in the correspondent accounts is favorable, in which case such a transaction is NOT Seen AT THE INTERNATIONAL BANK. The bank simply "sees", I repeat "sees" the exchange rate and sets to the client the price, which was at the interbank market at that moment. And only if the request is big and the bank cannot cover it, or it is unprofitable for it, or its correspondent account requires skewing HOWEVER - only then the bank leaves on interbank with this client request.
Understand at last that at big banks like UBS or Deutschebank - all or almost all clients' currency purchase orders are counterbalanced (and covered) by internal clients' currency sales orders. It is much easier and cheaper to cover an order than to go to the interbank (internal posting, from one client to another, who do not really see each other and think they have bought currency in Australia, although it was in the same Odintsovo).
Wait a minute, so it turns out that operations of only those traders who ensure that there is no distortion of correspondent accounts lead to exchange rate movements? So, any movement of the exchange rate is the bank aligns its correspondent account?
Wait, so the exchange rate movements are caused by transactions of those traders who ensure that there is no imbalance of correspondent accounts? So every movement of the exchange rate is the alignment of the bank's correspondent account?
Keep thinking... why does it have to level out?
somebody wants to transfer a lot of money... >> so we do it. >> demand and offer. )))
Keep thinking... why he's forced to level up
Somebody's got a lot of money to transfer... that's what we're doing. JOINT TENDER and PROPOSAL. )))
Yes, but it turns out that the root accounts are some kind of buffers and the exchange rate dances around with a kind of a delay.
What do you mean? This IS FOREX! Forex Live ONLY on correspondent accounts! There is no other way to buy or sell currency in the world! The client just does not see it. The bank may sell the client a currency from its free cash, if the situation in the correspondent accounts is favorable, in which case such a transaction is NOT Seen AT THE INTERNATIONAL BANK. The bank simply "sees", I repeat "sees" the exchange rate and sets to the client the price, which was at the interbank market at that moment. And only if the request is big and the bank cannot cover it, or it is unprofitable for it, or its correspondent account requires skewing HOWEVER - only then the bank leaves on interbank with this client request.
Understand at last that at big banks like UBS or Deutschebank - all or almost all clients' currency purchase orders are counterbalanced (and covered) by internal clients' currency sales orders. It is much easier and cheaper to cover an order than to go to the interbank (internal wire transfer, from one client to another, who do not really see each other and think that currency was bought in Australia, although it was in the same Odintsovo).
And we thought before that changing a hundred quid in the exchanger at the department store, granny at the window, no other way out but to the interbank ...
You either unload the whole structure if you know, or don't confuse people with individual puzzles
Yes, but it turns out that the root accounts are some kind of buffers and the exchange rate dances with a kind of a delay.
If bank starts to convert large amounts not at market rates (but from reserves) then it may lose on price differences. the structure and operation of the bank. not pricing.
If a bank starts to convert a large amount not on the market (but from reserves), it may lose on price differences. the structure and operation of the bank. not the pricing of education.
No, I meant with a delay in the sense that first the clients start buying currency and then the bank buys currency to level it out and only then the exchange rate moves. It turns out with a delay.
Although banks probably start buying currency as soon as there is an expectation that there will be a demand for it.
And we used to think that changing a hundred quid at the exchange office at the supermarket, the granny at the window was going to the interbank ...
Either unload the whole structure if you know it or don't confuse people with individual puzzles.
Yes it would be interesting to know more details. And a list of Literature would be nice too)))