Real-time risk management is essential in FX trading

Published on 17 October 2022

In 2022, FX markets have been tossed and turned by turbulent central bank policies, war in Europe, and the need to move in and out of international investment positions at speed.

For FX traders, managing risk in such a volatile environment needs near real-time visibility, with effective feedback loops providing analytics directly from the market back to the desk to help deliver pricing to customers. The ability to support pricing more effectively, allows dealers to reduce internal latency that in turn improves the buy-side firm’s trading performance, as well as allowing the dealer to optimise the spread to support profitability and competitive pricing.

Stuart Brock, head of business development at oneZero, explains how sell-side firms can boost the trading capabilities on their FX desk, and how that can directly impact performance.