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The 101 of Forex Dealing

The foreign exchange (forex) market is the largest, most liquid market on the planet, with a daily turnover that was estimated to total $5.2 trillion in 2016. But once you’ve ordered your trade, do you know what happens behind the scenes? FXTM’s Emma Davidson introduces you to the Dealing department, the unsung heroes of forex trading.

 
The difference between a Forex Dealer and a Forex Trader
 
Dealers are not to be confused with traders. A forex trader places an order based on his or her interpretation of market movements, but it is the job of the dealer to facilitate that trade; they act as the bridge between traders and the market. The dealing department, whether it is situated in a bank or broker, is responsible for optimising the trading experience. This encompasses everything from securing liquidity to maximising execution speeds. 
 
Dealers also keep an eye on the markets. Their Dealing room receives a wealth of information – it’s effectively the ‘mission control’ for brokers like FXTM. Dealers monitor everything from the current market conditions to economic developments and media headlines that may influence trading sentiment. It is their responsibility to anticipate sudden market movements, and to ensure their traders have the resources they need to capitalise on those outcomes. 
 
What makes a good Forex Dealer?
 
Dealing forex is both physically and mentally demanding, and you’ll struggle to find a Dealer who doesn’t look after their health. The forex market trades 24 hours a day, five days a week. The Dealing department is up and running the whole time, so Dealers can find themselves working odd shifts. In this environment, a routine is key and many begin their day with exercise and a healthy breakfast. Their goal is to set themselves up for a day that will require sound judgement and quick reaction times. 
 
Dealing also requires a very specialised skillset. It’s a fast-paced, high stakes role; dealers must be able to work under pressure, analyse large sets of data and react quickly. These guys typically come from a trading or analytics background, and have a strong grounding in mental arithmetic as well as the ability to remain calm under pressure. 
 
The financial markets respond to a wide range of pressures, from general elections to newly-released trade figures and central bank decisions. It’s the job of Dealing to anticipate what events might result in market volatility or low liquidity, and alert their traders accordingly. As well as this forward planning angle, the Dealing department must also react to sudden market movements such as flash crashes, political scandals or natural disasters. 
 
Every dealing department across the world has access to the same information at the same time, so speed in the Dealing room is critical. The decisions of individual dealers can have a significant impact on the profits or losses experienced by their traders; even on a quiet day, traders rely on dealers to execute their trades as quickly as possible, to avoid slippage and maximise their trading advantage. FXTM’s Dealing department is considered among the best, and the broker boasts one of the fastest execution speeds in the industry. Want to see what it is that sets them apart? Meet the team behind your trades with FXTM’s latest video, Beyond the Track: Two Teams. One Formula
 
Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
 
Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice.
 
NOTES TO EDITORS
 
The FXTM brand provides international brokerage services and gives access to the global currency markets, offering trading in forex, precious metals, Share CFDs, ETF CFDs and CFDs on Commodity Futures. Trading is available via the MT4 and MT5 platforms with spreads starting from just 1.3 on Standard trading accounts and from 0.1 on ECN trading accounts. Bespoke trading support and services are provided based on each client’s needs and ambitions - from novices, to experienced traders and institutional investors. ForexTime Limited is regulated by the Cyprus Securities and Exchange Commission (CySEC), with license number 185/12, licensed by the SA FSB with FSP number 46614, and registered with the UK FCA under reference number 600475. FT Global Limited is regulated by the International Financial Services Commission (IFSC) with license numbers IFSC/60/345/TS and IFSC/60/345/APM.
 
 
TAGS: 101  forex trading  forex trader  forex dealer 

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