DislikedYea, to be honest, the reason why I ask seemingly trivial questions is because I feel like "the devil is in the details"; I strongly believe that one's "edge" has to be holistically internalized, as in you have to not only have the rules and strategy, but a deep understanding of the dynamics and details of the market, as well as the philosophy to one's own trading (sorry to sound like such a theory-crafting nub, but this is what my personal beliefs are when it comes to trading).Ignored
DislikedHaving said that, I have yet to fully go through the whole thread, so I suppose I should have done that first before asking that question. At least now I have a clearer picture of how a typical Sales and Trading division works, but I just think that the trade by phone system seems to be a bit outdated unless: 1) you can work out a strategic and profitable trade with a client-partner with whom you have an established relationship (if these things still happen post-LIBOR, FX and whatever scandals that have happened up to this point),Ignored
Disliked2) there are still that many clients out there that are just that ignorant and outdated (who are most likely ripped off by their own LPs),Ignored
DislikedAnyway, it is clear to me now that in the spot FX market, no one Tier-1 LP works their trading in a vacuum (albeit with fragmented information pertaining to market direction, given other MM/LP competitors in the same market), be it in their flow-trading operations or in their prop-trading one, and that they actually work in the same market and not on some dark pool (the reason why I differentiated flow-trading from, quote-unquote, "live trading" was because I thought it operated on a dark pool).Ignored
DislikedI guess the questions I had can perhaps help those who want to get into institutionalized S&T regardless. That is not to say I am inclined to do so myselfIgnored
Dislikedand that there are superior advantages to trading for an institution,Ignored
Dislikedbut it wouldn't hurt for me to know those technical details if I ever do find myself in a networking situation where I am at least able to carry out a convo that is on the same wavelength with a institutionalized trader irl.Ignored
Disliked{quote} nubbins, you are absolutely right that if you want to successful trader you must know how the big guys thin and act. From my experience I can tell you that they care only about the bonuses. For a lot of them this is the larger part of the income.Ignored
DislikedBefore I end this post, a question just occurred to me: can you explain the Black Swan event from a former institutional trader's POV?Ignored
DislikedIs it wrong for me to just assume that it is as simple as all Tier-1 LPs decided to widen the spread for "price-finding" reasons by over 2-4000 pipsIgnored
Disliked(or a more likely scenario would've probably been one LP decided to take the first step to list such a ridiculously marked-up price and then had a transaction on it...)?Ignored
I'm not trying to convince anyone. I'm not in the "convincing" business.