PHONE ETIQUETTE WHEN PLACING TRADES
Forex trading desks can get very busy, especially during fast markets, so please be concise with your order. Virtually every forex trading desk follows the standard industry procedure for placing a forex order, as follows:
You call the dealing desk and say:
"Hello, my name is (Trader's Name), account number _______. (If required, give your trading account password). Please give me a price on (Currency Pair or Option) for ________ (trade size)."
Example (Spot): "Hello, my name is Joe Smith, account number 12345. Please give me a price on U.S. Dollar/Jap Yen for 200,000."
Example (Options): "Hello, My name is Joe Smith, account number 12345. Please give me an option price on Euro/U.S. Dollar March 200x 1.2550 call for 500,000."
The dealer will respond with a 2-way price quote.
Example (Spot): Dealer responds: "105.10-13" (This means you can sell at 105.10 or buy at 105.13)
Example (Options): Dealer responds: "125-140" (This means you can sell for 125 pip premium or buy for 140 pip premium)
You will normally have a couple of seconds to respond to the dealer prior to a price change/requote, depending on market volatility.
To buy the spot, you say "I buy at 13".
To sell the spot, you say "I sell at 10".To buy the option, you say "I buy at 140"
To sell the option, you "I sell at 125"If a prompt response is not given to the dealer and the price changes, the dealer may say "change," "price change," "off," or "your risk," in which case you will be requoted at the updated price.
Once you respond, the dealer will say "done" or otherwise indicate your trade has been executed. It is a good habit to re-confirm the order by immediately repeating the order back to the dealer.
Example (Spot): You confirm: "Account 12345 bought 200,000 U.S. Dollar/Jap Yen at 13"
Example (Options): You confirm: "Account 12345 sold 500,000 Euro/U.S. Dollar March 200x 1.2550 calls at 125"
*Please note that foreign currency orders placed via telephone may not immediately show up in your account because the contract details must be entered manually by the dealer.