Anyone into Forex?

[AAAgent]

I just started FX Sales at a retail FX firm. They have me cold calling on my 3rd day already (with no training) i i have no knowledge of the industry. been pulling all nighters with reading material. Now working on building company lists and documenting all this stuff.

Any info would be appreciated.

 

[Speculator E]

Hi AAAgent,

I'm not in the industry but I trade FX part time. FX Sales are brokers. I'm sure you know that. A lot of people heard of Forex but have no idea on how it works. And are too lazy to try to learn. You're a sales man, so your job is to convince them they can make money. Besides that I don't know what else to tell you.

Forex is a hard market to trade. It does a lot of flash crashes for no apparent reason at all.

 

[AAAgent]

so i'm completely new. There's no training and i spent all wednesday night learning about spread's (bid/ask difference), spots, forwards, the industry, why and how people need to convert currencies, etc.

My company doesn't trade/deal with speculators. We work with SME's trying to pay foreign invoices or employees. Companies i will target include but are not limited to import/export, charities, manufacturing, etc.

So I.E. i work with a local cheese importer who imports cheese from Germany. He needs to pay his supplier 100k a month. I make a small 0.10% spread off the conversion for him and thats it.

I did not know any of this still after reading and making a lot of calls. Sh1t just started to make sense so i guess i have a better grasp on things now. My co worker said our classification in the pool of people involved in the FX markets is probably considered "Market Takers" no clue what that means yet.

So i'm learning the cold calling part of how I can be helpful to them just form cold calling but i have no clue how to read the markets yet, so any info on that would be helpful as well.

 

[Bible_Belt]

Market Markers post bids and offers, thus "making a market." I have never heard of Market Taker, but it sounds like "take the offer," which is to buy at a price already advertised price. and fwiw I don't know forex terms, but in other markets, you hit the bid, not take it. I guess Market Taker sounds better than Bid Hitter. Just remember "hit the bid, take the offer."

Is there any licensing involved for you or the brokers? For stocks, you can cold call without a license as long as you work for a broker. If you haven't seen it, go watch the 90's movie Boiler Room; it's about sleazy stockbrokers. I can attest that whoever wrote the script researched it well. The "rebuttals" that are taught to the cold callers are the same ones that I was taught. You have to ask your wife? Who wears the pants in your family?

And you say you don't deal with speculators, you mean pure speculators, right? As far as I understand it, there is a risk involved in taking any position. A company can establish a forex position to insure against a big move against them and that might cost very little. But if the move doesn't happen, that small price is lost, which is the risk.

And this is slightly off-topic, but check out cryptocurrency pair trading: https://www.coinmkt.com/#/ I would wonder what your Forex friends think of it.

 

[AAAgent]

so this is what my company does

http://www.investopedia.com/terms/a/authorizeforexdealer.asp

Definition of 'Authorized Forex Dealer'

Any type of financial institution that has received authorization from a relevant regulatory body to act as a dealer involved with the trading of foreign currencies. Dealing with authorized forex dealers ensure that your transactions are being executed in a legal and just way.

Investopedia explains 'Authorized Forex Dealer'

In the United States, one regulatory body responsible for authorizing forex dealers is the National Futures Association (NFA). The NFA ensures that authorized forex dealers are subject to stringent screening upon registration and strong enforcement of regulations upon approval.