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Guest lecture Kourosh Khanloo

With a little help from Mr. Khanloo

On 01.11.2013, Mr. Kourosh Khanloo from Forex Capital Markets Ltd. (Berlin) served as a guest speaker in the lecture Applied FX Trading organized by Viadrina professor Georg Stadtmann. The overall topic of his course was B|Orders in Motion – The FXCM trading platform.

He gave a very good introduction and an excellent overview of this powerful trading tool. The talk was closely related to the overall research and education theme B|Orders in Motion of the European University Viadrina. Khanloo talked about the different styles of market orders such as Market Range or At Best Orders which give you either price certainty or execution certainty. Hence, these two different order types vary with respect to the permeability of the order. So called Entry Orders are not executed directly, but only after the market rate crosses the border defined by the trader. In this respect we will learn to distinguish Limit Entry and Stop Entry Orders. We will also learn how we can modify or cancel entry orders. Thereby, we address the issue of the durability of orders and borders. We also got insight into Dynamic Trailing Stop Orders which shift borders in a predefined order due to developments of the market rate. In order to reduce the limitation of a simple order, one can combine various orders by using the OCO options. OCO stands for One Cancels the Other and implies that if one order is executed, the other order will automatically be canceled. However, during the time period where both orders are still standing one can interpret this state as a form of liminality. As these examples show, the trading sphere can be extended tremendously: No limitations. Borders do not exist: ''The sky is your limit.''

Did it help? Yes! Until now, the overall trading success was limited and nearly every position ended up in a loss. Therefore, we implemented the good old trading strategy: When you are in trouble – double! And it helped! Although our demo account in class is limited to 50.000 € we sold 10 million € short against the USD. And with this leverage we were able to make a 10 % gain within a day. Of course it is only a paper gain but due to our trailing stop we will end up in a profit. For sure!?! Hopefully!?! One problem still exists: It is just a regular stop but not a guaranteed stop….