Am i correct to assume that tier 1 give a price to tier 2 who add there spread who give a price to tier 3 who again add there spread who give it to everyone.?
Generally tier one prime can deal 1 price up to 500 million usd.
Tier one up to 200 million.
tier 2 between 10 to 50 million
tier 3 2 to 10 million.
PER quote.
so if i get taken by customer example 500 million.
i will need call many banks of multiple tiers.
but of course i will try call out tier 1s, because i will probably need buy just to add to my advantage.
so i would be tryig call other tier 1s , i have relationships with first try get out the size.
if i call unfriendly tier 1s they may take their own sweet time make a price.
and if i cannot satisfy size, next in line will take the tier 2s
then..tier 3s, then brokers, and as market comes in my favour will be calling out take profits.
is unfriendly call the same chaps I took from, is scalping them
so will need call other avenues.
and the same probably happening to the chaps i took from.
and the thingy will go round and round like a musical chairs game.
until it stops running.
regards
In a non moving market scenario, it not matter who we call.
But once we hit size.
peeps will start scutter the prices.
some banks are unfriendly.
These not even bother to call.
because by the time they "mom please" and quote price may had moved 100 pips.
nasty ones not even bother pick up the line.
hiding under their desk.
the relationships are reciprocal, so if i call them for 100 mio price, i am obligh make them back price in those sizes,up to their request. when they call back.
so tendency is to call friends first, hit them, then they can see what has happened and will be calling out get out of the positions and adding their weigh in as well. So those sour puss banks who have bad relationships will always get the brunt of the stick.
When i need prices at 1 time will call out at least 8 banks at 1 go.
cannot lump all size to 1 that will kill your friend, unless he is so big balls macho that he an take size. We tryy spread it out as best satisfying size.
during market ops for CBs, or major fig releases, is crazy chaos mostly as can be dealing in couple of billions. Some times all credit lines ' burst' and need borrow cedit lines from other banks for name switches thru brokers.is not like the running prices retail gets, hor. we market makers.
if you tier 1 and you calling out. every one s shivering in their pjs.(suits)
tier 1 's seldom calls out unless get hit real big,otherwise tier 1 can take easy up size each and prices not even move.
but when many tier 1s moving in sync, can be real hellish.
for retails you may still be trading certain levels , while interbanks may had moved 20 30 pips
then you find suddenly next price 20 pips away.
.seriously if u go couple of pages back, i asked the same question to fti and he gave me an answer which i am very satisfied with and i feel more flexible having a bias now and i can dare say last 300 pips move i caught is the results of his advise.to me having a bias is very important...
jack
adultery? laying? cheating? what?