The foreign exchange trading market is changing dramatically with the arrival of electronic trading. Today's electronic environment means that participants are looking for faster and tighter pricing with faster relevant news flows than ever before. Also, market participants are looking for trading platforms, which are Internet enabled, scalable across regions, reliable and safeguarded against crashes, and which can be integrated with various risk management systems. The future lies largely in the ability of market makers to deliver a better service to their clients, whether it is offering transaction, deal capture, trade history facilities or risk management capabilities. At the end of the day, it is all about the value chain and how it is delivered to clients. Internet trading might be here to stay, but the foreign exchange market should not expect volumes to increase significantly. At the end of the day, the foreign exchange market will always be a people-to-people marketplace.
So, in conclusion, foreign exchange is both a science and an art. Risk can be quantified and alternatives identified to reduce or eliminate it. But judgement, personal attitudes towards risk, as well as other personal and corporate orientations, are required for consistent position management. I repeat again, profit opportunities and potential loss are equal and opposite.
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