To avoid useless misunderstandings, let us pick up some words to be taken care of from the "Code of Conduct" for the interbank traders. This booklet explains in Japanese. If you have any interest, take a look at this one.
Anyway, take care of sneezing in front of the mike, please!
By the influence of sound quality or other noises, the conversation sometimes becomes hard to hear over the phone. It may bring about unexpected misunderstanding. It often occurs from my own experience when I was a bank staff.
It was the time when I entered the dealing room and tried to say "Good morning" to the forex broker via mike one morning. It was so cold that it might tickle my noise. I sneezed toward the mike. Next moment, a big voice was surrounding, "Given" from the speaker. The colleague traders were just laughing. I asked the forex brokers what has happened because I did not know at all. They said "three million US dollar has been sold". I decided hold that position. Because I felt sad and funny, I asked another friend. He said that he also sold US dollar as well in the morning because of his sneezing. Then, we both could not help bursting out for a while. This was a interesting story that we started from the short position on that day, and it indicates a terrible story that sneezing sound hears like "Hit your three" regardless of our intention.
The good point of the phone trade is to get some useful information over the conversation. The forex brokers make so much chats in the forex market with many customers where the market information is gathering. They also have special news sources. It is very convenient for investors who have no source to make sure what has happened in the forex market when the market prices move suddenly and rapidly.
The system failure or the connection trouble does not occur in the phone trade. The merit of the phone trade is that it should be stable to trade forex during 24 hours long.
The weak point of phone trade is just that you cannot trade forex timely and speedy. Several seconds would need for dialing up and another seconds for identifying what the customer to be, and more for specifying the product, the amount and the side you want to trade through the forex broker. In addition, some more seconds would take for getting the price quotation from the forex broker. It might take at least 30 seconds even at the good forex broker who is good at market connection. Usually, it should take above one minute to trade forex in the phone trade.
As the investors who have once experienced the phone trade should know, they could not buy or sell at the market where they have thought to be, and sometimes the price is apt to move in the disadvantageous direction for the investors. This case happens quite often when the investors want to close their positions. The forex brokers would look over their intention to trade, buy or sell, and slide the price quotation upper or lower because the forex brokers should have known the customers' interest in advance. That is because the forex brokers sometimes aim to gain from the gap between the actual market price and the customers' interest. It never happens in the online trade where to show the market price quite fair.
