TradeView FX sm User Guide

TradeView FX sm User Guide

Contents Introduction 1 TradeView Functions 2 Trade Entry Screen 2 Changing Amounts 4 Bid/Offer Balance 4 Number of Iteration 5 Single/Double Click Dealing 5 Setup Default Chase / Slippage 6 TradeView Algorithm 7 TradeView is a service mark of Hotspot FX, Inc. Production support +1 201 356 1789, Sales support +1 212 209 1420 i

Introduction TradeView is a allow clients to execute FX trades on the Hotspot FX quick and simple. It is a different way to view market depth: TradeView enables you to see the weighted average prices for specified quantities as opposed to amounts that are available at given prices in the standard Hotspot FX ECN. It is a different way to trade: TradeView also provides a special execution algorithm and related functionality that enables your order to be filled at the displayed price or better, effectively allowing you to manage, and all but eliminate, slippage when sending at best orders for large amounts. Production support +1 201 356 1789, Sales support +1 212 209 1420 1

TradeView Functions The main feature of TradeView is its trade entry screen, which displays weighted average prices, accurate to the nearest 100 th of a pip, for a range of user-defined quantities. Please note all usual Hotspot FX functionalities, including Deal Log, Position Window, Active Price Screen, Single or Double Click Dealing, are available within TradeView as they are within the FX ECN (except bid/offers). Trade Entry Screen As in the FX ECN, the Trade Entry Screen is the primary trading screen for the system. The FX ECN and TradeView tabs are linked to keep the currency pairs consistent. The TradeView Trade Entry Screen displays a series of amounts, which can be user defined (see below), and the weighted average price for each of these amounts. Amounts are color-coded for instant cognition: lighter blue indicating smaller amounts and progressively darker blue indicating progressively larger ones. Users can: Launch a purchase/sale of an amount by clicking, single-clicking or double-clicking (if selected) in the cell showing the weighted average price for that amount. This will trigger the execution algorithm described below, which ensures the final execution price will not be worse than the price clicked on. However, the order may or may not be completely filled. Buy or sell traditionally by clicking on the best buy/sell cells (in yellow above). This enables the user to buy or sell as on the FX ECN. Please note that the amounts displayed correspond to amounts available at best bid or best offer. Production support +1 201 356 1789, Sales support +1 212 209 1420 2

Please note that at any time, you can toggle between TradeView, the standard FX ECN and PanelView, by clicking on ECN button. The red indicator denotes what view is displayed. Please note if you have an outstanding order, the order window will remain visible when toggling between the ECN views. In addition, should there be any weighted average price reflecting one of your orders, it will be shaded in yellow as below: TradeView will calculate the weighted average price without your order and you will be able to trade on the price, although you will not match against your order. You can change the size of the TradeView display by dragging the corner of the window to enlarge it or shrink it. The font size of TradeView window will scale to the size of the trade entry window. You will be given the option to save the new size as your preference. When an order is completed, you can check that the actual weighted average price is equal or better than the rate at which the order was sent to the server: Production support +1 201 356 1789, Sales support +1 212 209 1420 3

Changing Amounts To change the dealing amounts displayed, right-click on any amount you want to change, highlight one of the default amounts or enter your own amount in the blank rectangle at the bottom (in the example below, user wants to replace 15 with another amount). Amounts will be re-sorted automatically after entry from smallest to largest Bid/Offer Balance The Bid/Offer Balanace option will automatically put the original order s unfilled balance on the FX market. Production support +1 201 356 1789, Sales support +1 212 209 1420 4

Number of Iterations TradeView configuration tools are available in the Options-Preferences-Setup thumbnail. Setting a maximum number of iterations for the algorithm to use to execute a TradeView order for the full quantity at the target price or better. The maximum number of iterations is 16. As a rule of thumb, if you have a high speed connection and low latency, you should choose a higher number of iterations. Please note, prior to order entry, the TradeView order box will automatically follow the market as market prices change if the Buy/Sell Price Follows Market preference setting is enabled. Once an order is entered using TradeView, the target price will be respected absolutely or modified using the chase factor function described below. Single/Double Click Dealing This option allows a user to execute aggressive trades by populating an Order Ticket window or by bypassing the window option. Normal mode will populate an Order Ticket window after pressing the Sell / Buy button or the Sweep Sell / Buy button. 1Click mode will not populate an Order Ticket window. Single clicking within the Sell / Buy button or the Sweep Sell / Buy button will execute an aggressive trade; the only window to appear is the Close Ticket window after the order request is processed. 2Click mode will not populate an Order Ticket window. Double clicking within the Sell / Buy button or the Sweep Sell / Buy button will execute an aggressive trade; the only window to appear is the Close Ticket window after the order request is processed. Production support +1 201 356 1789, Sales support +1 212 209 1420 5

Setup Default Chase / Slippage The Chase/Slippage is set using the Chase column in the Options-Preferences menu on CCY Pair tabs. This feature enables the system user to set a default number of pips that TradeView may deviate from the weighted average price to fill the entire order quantity at submission (see Algorithm Description below for additional information). A chase / slippage can be set per ccy pair. When preferences are set, press Apply to implement them The Chase can be modified on the Tradeview order ticket prior to submission by highlighting the field under the price and entering a value. To cancel a Chase just reset it to zero. Production support +1 201 356 1789, Sales support +1 212 209 1420 6

TradeView Algorithm 1. TradeView will seek to execute all orders at or better than the weighted average price displayed. This means the actual total amount sent for execution in its first iteration will often be lower than the original order amount. 2. When TradeView gets the results of this first wave of orders (filled, partially filled or not done), it recalculates a new marginal weighted average price required for the next wave of orders so that the original guaranteed price is respected. 3. TradeView will continue to launch orders until all iterations are completed. 4. When the Chase option is enabled the option will attempt to execute trades at a price slightly worse than the original price submitted; then attempt to execute additional trades at the weighted average price. 5. In many cases, the eventual result will be better than the price at which the order was originally submitted, as TradeView s execution algorithm trades against Iceberg Orders available on the platform, whereas the TradeView display algorithm does incorporate these hidden orders. Production support +1 201 356 1789, Sales support +1 212 209 1420 7