Help with FX

razr · February 18th, 2009, 9:53 pm

Appreciate if someone could provide pointers to learn about FX spot/FXO models. Promised to help a friend who is planning to invest his savings to survide through the winter.

pnrodriguez · February 19th, 2009, 4:03 pm

Try The Economics of Exchange Rates, by Sarno and Taylor. See http://assets.cambridge.org/052148/1333 ... 1333ws.pdf for more info. It is a good survey of the literature, both empirical and theorical. It also has a chapter on Microstructure.Hope this helps...

dpm25 · February 19th, 2009, 11:19 pm

if you are suggesting that your friend, with no knowledge whatever of FX markets plans to trade with his savings for a main source of income at a time like this, I would have thought the best help you can give him is: don't.

pnrodriguez · February 20th, 2009, 1:17 pm

dpm25, you are right. For some reason, I concentrated on the first part:QuoteAppreciate if someone could provide pointers to learn about FX spot/FXO models. One should never invest to survive. One may end up loosing everything....

razr · February 21st, 2009, 12:04 pm

Not quite that. In the past we have worked for equity derivatives desk, he knows what he is doing. I am supposed to help with the intial legwork to get the environment setup - however I am also new to FX having spent most of my time on equity/equity linked.