The institutions use models to value instruments so they know when they are trading at a discount (the can buy it for cheap and sell it later for a profit) or at a premium (ie can sell something expensive and buy it back later cheaper for a profit). ...

Pivot Trading

It was also very cheap. The blue line is the main value line the institutions will use to value GBP image

Pivot Trading

Yes it will happen throughout the month but at the end of the month is when the major re balancing happens.You will often see articles mentioning this at the end of the calendar month where they one or another currency needs rebalancing. They can ...

Pivot Trading

No GBP hasnt become a safe haven. The large pensions funds are not allowed to carry FX exposures on their cross currency investments. Due to the change in the FX value versus their foreign investments at month end they are forced to balance their ...

Pivot Trading

I was trained (and still mentored) by an institutional trader. We trade what is called statistical arbitrage where instruments are valued against correlated assets in addition to analysing the various yield curves to understand the general ...

WTI Crude Oil Trading

Institutions rarely trade the news releases they trade their economic forecasts for the news release. The trade is over by the time news comes out and they will usually use the volume generated to exit their trade. Are you asking why is Oil going up ...

WTI Crude Oil Trading

You should do the course if you are using algos. Ray designs algos for the institutions and teaches us how they 'think' when they are engaged etc etc. Also you will learn what markets to use for the correlations, plus all the orderflow etc etc

Institutional Equivalent Education?

The lower target for this session is 1.12950 - 1.13000 (higher 1.13000- 113100)

EURUSD

The NFP number is not the important number to watch (unless it's a very large miss or overshoot). As the US is at full employment the Average earning number is the one to watch . This has direct impacts on inflation and the FED thinking with regards ...

EURUSD only

The NFP number is not the important number to watch (unless it's a very large miss or overshoot). As the US is at full employment the Average earning number is the one to watch . This has direct impacts on inflation and the FED thinking with regards ...

EURUSD

One needs to distinguish between Institutional traders(ITs) and the Market Makers (MMs). They have different business models and therefore different intentions in the market. IT traders are directionally biased. They try to take the market in one ...

Cable Update (GBPUSD)

Taken a bit more time that I expected. I had to buy in three times. Still have the same target

Cable Update (GBPUSD)

GBP is very cheap this morning on my value models. Long 1.3245 (futures) . That would be 1.3233 on spot. This price was in the buying / take profit target from yesterdays move. Also the Market Makers in the option markets have prices the lowest ...

Cable Update (GBPUSD)

If they hold it above the red box and the market goes bid during the london session, then the upper green box is the next target. image

Cable Update (GBPUSD)

Cable has met its initial upside target for the accumulation in the yellow box. It however hasnt built any volume in the move up and so expect it to retrace to test the volume below the market at the lower green box. If it hasnt retraced during the ...

Cable Update (GBPUSD)

The market knows that Carney is bearish Brexit. There have also been quite a few negative economic releases before the meeting so he cannot be Hawkish. So the market sells off before the meeting, as its expected and they price the news in. When the ...

Cable Update (GBPUSD)

No, I posted earlier the number to watch is not the NFP number as US is at full employment. Its no longer relevant. You need to watch the Average Earnings numbers. This is what the banks are watching this, why the Eur has popped up. It was a big ...

EURUSD only

With Unemployment at target ie 4% the NFP numbers become less relevant unless it prints a very large miss or negative numbers. The more important number is the Average earnings amount which is an inflationary indicator and one of the numbers the FED ...

EURUSD only