Phone Currency Trading

You can also trade currencies on the phone via a toll free number. The phone currency trading desk can take your currency orders 24 hours a day, from 5PM EST on Sunday to 3PM EST on Friday. The example below illustrates what takes place when a currency trader calls a dealer to place a trade:

• A currency trader calls the currency dealing desk and asks for a two-way quote for the EUR/USD. The currency trader says, "I would like a quote for the euro dollar for 1 lot."
  
  
• If the trader calls the trading desk frequently and is already well known, the currency dealer will likely respond, "82-85." If not, the currency dealer on the phone will quote the whole figure (known as the "big figure"), "1.1287-90". The reason for this is that in the currency trading market, it is generally assumed that the "big figure" (i.e., 1.12) is known.
  
  
• After that point, the currency trader has a short time to decide if he wants to buy, sell, or ask for a requote. If a fast moving market, the trader might only have a few seconds to accept the price before it is changed by the dealer. The dealer might say, "off" or "change" and quote a new price (bid and ask) in the market. That is why it is important when placing an order over the phone, to have the following information ready before the dealer answers:
  
  
  • Your account number
  • Whether you are buying or selling
  • The size of your order (number of lots)
    
  • The currency you wish to trade
  • The price at which you would like your order placed (for limit or stop orders)
  • The type of order desired (market, limit, stop, OCO, etc.)
    
    
• In the example used earlier, if the currency trader decides to buy 2 lots at the current market price, the dealer will confirm the transaction by saying "I confirm you bought 2 euro at 1.1285."

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