Quotations by Mark Galant
90 percent of daily trading volume is derived from speculation (meaning, commercial or investment-based FX trades account for less than 10 percent of daily global volume). [2007] - Mark Galant
According to a 2004 survey, currency trading volumes in the Asia-Pacific session account for about 21 percent of total daily global volume; European financial centers and London account for over 50 percent of total daily global trading volume, with London alone accounting for about one-third of total daily global volume; the North American trading session accounts for roughly the same share of global trading volume as the Asia-Pacific market, or about 22 percent of global daily trading volume. [2007] - Mark Galant
In some less liquid, non-regional currencies, like GBP/USD or USD/CAD, price movements may be more erratic or nonexistent, depending on the environment. [2007] - Mark Galant
On most days, market liquidity and interest fall off significantly in the New York afternoon, which can make for challenging trading conditions. [2007] - Mark Galant
It’s always important to be aware of what’s going on in other financial markets. But it’s also essential to view each market in its own perspective and to trade each market individually. [2007] - Mark Galant
Gold is commonly viewed as a hedge against inflation, an alternative to the U.S. dollar, and as a store of value in times of economic or political uncertainty. Over the long term, the relationship is mostly inverse, with a weaker USD generally accompanying a higher gold price, and a stronger USD coming with a lower gold price. Overall, the gold market is significantly smaller than the forex market, so if we were gold traders, we’d sooner keep an eye on what’s happening to the dollar. [2007] - Mark Galant
As currency traders, you definitely need to keep an eye on the yields of the benchmark government bonds of the major-currency countries to better monitor the expectations of the interest rate market. [2007] - Mark Galant
Rollovers can earn you money if you’re long the currency with the higher interest rate and short the currency with the lower interest rate. Rollovers cost you money if you’re short the currency with the higher interest rate and long the currency with the lower interest rates. [2007] - Mark Galant
Market liquidity is deepest during the European session when Asian and North American trading centers overlap with European time zones — about 2 a.m. to noon Eastern time (ET). Markets are also prone to quick price adjustments in the 15 to 30 minutes ahead of major data releases as nearby orders are triggered. [2007] - Mark Galant
a short-term (over the next few hours) trading range may be 20 to 50 pips wide, while a longer-term (over the next few days to weeks) range can be 200 to 400 pips wide. Medium-term traders are normally looking to capture larger relative price movements — say, 50 to 100 pips or more. [2007] - Mark Galant
Most markets trend no more than a third of the time. [2007] - Mark Galant
Long-term trading in currencies can involve holding positions for weeks, months, and potentially years at a time. Holding positions for that long necessarily involves being exposed to significant short-term volatility that can quickly overwhelm margin trading accounts. Individual margin traders can seek to capture longer-term trends. The key is to hold a small enough position relative to your margin balance that you can withstand volatility of as much as 5 percent or more. [2007] - Mark Galant
Carry trades usually work best in low-volatility environments. Carry trades need to have a significant interest-rate differential between the two currencies (typically more than 2 percent) to make them attractive. [2007] - Mark Galant
One of the keys to successful trading is to cut losing positions quickly, and let winning positions run. A trailing stop-loss order allows you to do just that. [2007] - Mark Galant
A one-cancels-the-other order (more commonly referred to as an OCO order) is a stop-loss order paired with a take-profit order. An OCO order is the ultimate insurance policy for any open position. [2007] - Mark Galant