How Welcome is Volatility to Brokerage Firms?

How Welcome is Volatility to Brokerage Firms?

Assessment

Interactive Video

Business

University

Hard

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The video discusses the role of volatility in the FX market, highlighting its importance for trading activity. It addresses the challenges posed by low volume, which can lead to aggressive pricing. The availability of credit is crucial, as traditional market makers withdraw, creating opportunities for brokerages to step in. Upcoming events like Brexit and the US election are identified as potential sources of high volatility. The brokerage's strategy focuses on providing credit lines to capture market share in this evolving landscape.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of volatility in the FX market according to the text?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How has the role of market makers in the FX market changed over time?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What concerns are raised regarding liquidity in the FX market?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What events are mentioned that could potentially lead to high volatility in the market?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the text describe the impact of credit lines on the FX market?

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