3.58% of Forex Volume is Gone? | Forex Factory

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3.58% of Forex Volume is Gone?

  • #1
  • First Post: Edited Sep 20, 2008 1:25am Sep 19, 2008 8:14pm | Edited Sep 20, 2008 1:25am
With Lehman out of commission, and AIG being removed as a currenex liquidity provider, a necessary question must be posed: With more and more investment banks going under:

1) Which one is next?
2) What effect will these developments have on liquidity?

http://i33.tinypic.com/id88rq.jpg
  • #2
  • Sep 19, 2008 8:19pm Sep 19, 2008 8:19pm
3% of 1 trillion daily volume is 30 billion. There's still plenty left as I see it.

As the larger banks fail, I'm sure smaller, more nimble competitors can take up the slack.
  • #3
  • Sep 19, 2008 8:27pm Sep 19, 2008 8:27pm
Right now it is. But this could only be the beginning...
Also, you are taking this very lightly, but this could change existing technical trends and volatility and therefore break many existing systems (especially EAs).
  • #4
  • Sep 19, 2008 9:29pm Sep 19, 2008 9:29pm
i noticed the ATR for the EURUSD was VERY high this week.... the highest i've seen in years....

and my EURUSD EA got creamed as a result.
  • #5
  • Sep 19, 2008 10:08pm Sep 19, 2008 10:08pm
Quoting Ronald Raygun
3% of 1 trillion daily volume is 30 billion. There's still plenty left as I see it.

As the larger banks fail, I'm sure smaller, more nimble competitors can take up the slack.
Very true. Life (or FX) goes on with or without you
  • #6
  • Sep 19, 2008 10:12pm Sep 19, 2008 10:12pm
1) Which one is next?
Who knows. My question is how many other countries/nations will have the same/similar fallouts? This problem is not going to be just confined to the US.

2) What effect will these developments have on liquidity?
Short term it may be affected, but not for long. Like Raygun says, the slack will be taken up at some point.
  • #7
  • Sep 19, 2008 10:46pm Sep 19, 2008 10:46pm
My liquidity on Currenex at PFG has improved with JPMorgan taking over AIG's role. Typically during those 10 pip gaps on the EURUSD AIG would spread out 5+ but JPM keeps things pretty tight usually no more than 2 wide. I'm happy with the new liquidity. On Wednesday they were holding orders for about a second before execution but today they were straight through instantly.
It really is that easy.
  • #8
  • Sep 20, 2008 1:57am Sep 20, 2008 1:57am
Dude..Its just the name...The same people who worked for Lehman are now working for Barclays and they will get the clients for FOREX for barclays.

Nothing will change...There are very smart guys up there..who have made millions and bailed out...

I dont know if you guys read and understood what credit derivatives and CDS are...If you do..you will kick yourself and say damm...wish i was in those guys shoes ..and made millions along the way...

I'm saying this again...THEY ALREADY KNEW IT COMING>>It is what they say GAME OVER....the fallout...media frenzy..is the way the game ends and winner runs...

The next cycle of game will begin shortly..

Dude...It happened in America...They already figured it out..how to get in and how to get out...They never loose

We too did not loose either..we just missed an opportunity to make big money, cos we were not working for those companies

Some of the guys in America are paid to manipulate the market with billions and billions of FED money...We should envy those guys..what a job they have
  • #9
  • Sep 20, 2008 2:04am Sep 20, 2008 2:04am
Quoting tdion
i noticed the ATR for the EURUSD was VERY high this week.... the highest i've seen in years....

and my EURUSD EA got creamed as a result.
Yes, on have to go back to 1995 and 1992 to see such high ATR... This is not a good news...
  • #10
  • Sep 20, 2008 3:20am Sep 20, 2008 3:20am
Quoting spiderforex
Dude..Its just the name...The same people who worked for Lehman are now working for Barclays and they will get the clients for FOREX for barclays.

Nothing will change...There are very smart guys up there..who have made millions and bailed out...

I dont know if you guys read and understood what credit derivatives and CDS are...If you do..you will kick yourself and say damm...wish i was in those guys shoes ..and made millions along the way...

I'm saying this again...THEY ALREADY KNEW IT COMING>>It is what they say GAME OVER....the fallout...media frenzy..is the way the game ends and winner runs...

The next cycle of game will begin shortly..

Dude...It happened in America...They already figured it out..how to get in and how to get out...They never loose

We too did not loose either..we just missed an opportunity to make big money, cos we were not working for those companies

Some of the guys in America are paid to manipulate the market with billions and billions of FED money...We should envy those guys..what a job they have
You mean the ones carrying their cardboard boxes out of the Lehman building? It's usually the one's who think they are invincible that get hit the hardest... there are no short-cuts.
  • #11
  • Sep 20, 2008 9:49am Sep 20, 2008 9:49am
spider i'm not saying the FED doesn't donate money to Wall Street to gamble but can you give more insight or examples?
This week alone the FED gave over 200bio to Wall Street banks.
It really is that easy.
  • #12
  • Oct 12, 2008 6:01pm Oct 12, 2008 6:01pm



http://i34.tinypic.com/im86lc.jpg
  • #13
  • Oct 12, 2008 6:10pm Oct 12, 2008 6:10pm
Just wait, another bank will take its place, just like what happened in the savings and loan crisis: http://en.wikipedia.org/wiki/Savings_and_Loan_crisis
  • #14
  • Oct 12, 2008 6:43pm Oct 12, 2008 6:43pm
Quoting Ronald Raygun
Just wait, another bank will take its place, just like what happened in the savings and loan crisis: http://en.wikipedia.org/wiki/Savings_and_Loan_crisis

That's not the point. If you think this has no affect on the market, you are probably mistaken.
  • #15
  • Oct 12, 2008 6:47pm Oct 12, 2008 6:47pm
I don't deny that the market is affected by this. I'm merely trying to point out that bad things have happened before, and afterwards, things got better.

This is akin to a retracement on any forex chart. I seriously doubt this financial crisis is the equivalent of a trend reversal.
  • #16
  • Last Post: Oct 12, 2008 7:10pm Oct 12, 2008 7:10pm
Quoting Ronald Raygun
I don't deny that the market is affected by this. I'm merely trying to point out that bad things have happened before, and afterwards, things got better.

This is akin to a retracement on any forex chart. I seriously doubt this financial crisis is the equivalent of a trend reversal.
Well, the future most necessarily conform to the past.
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