The use of fundamental and technical analyses by foreign exchange dealers: Hong Kong evidence

Article Abstract:

Less than 85% of foreign exchange dealers in Hong Kong utilized fundamental and technical analysis to establish their predictions of exchange rate movements. Most of the foreign exchange dealers surveyed, however, favor technical analysis over fundamental analysis when predicting future rate movements at shorter horizons. Compared to fundamental analysis, technical analysis was cited by foreign exchange dealers for its usefulness in terms of predicting trends and turning points.

Models, Hong Kong, Forecasting

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Profits and position control: a week of FX dealing

Article Abstract:

A dealer of foreign exchange trading averages $100,000 profit daily, on volume of $1 bil per day, while equity dealers average roughly only $10,000 profit per day. The half-life for the dealer is just 10 minutes, hence, a very rapid inventory management. The 10 minutes is exceptionally short as opposed to half-lives for equity specialists of one week. A methodology for calculating speculative position-taking over time was developed.

Foreign exchange

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