Episode 4 completes Part I: Foundations by teaching listeners how to read and understand foreign exchange quotations. David Axtell breaks down the fundamental mechanics of FX quotes, explaining base versus quote currencies, pip calculations, bid-offer spreads, big figure conventions, and common mistakes that even experienced professionals make.

1. Base and Quote Currencies (4 minutes)
2. Pips and Pipettes (4 minutes)
3. Bid-Offer Spreads (4 minutes)
4. Big Figures and Abbreviated Quotations (3 minutes)
5. Direct vs Indirect Quotations (2 minutes)
6. Common Mistakes and How to Avoid Them (3 minutes)

By the end of this episode, you will:

• Understand the difference between base and quote currencies
• Calculate pip values across different currency pairs
• Interpret bid-offer spreads correctly
• Read abbreviated quotations using big figures
• Avoid common execution errors
• Have the foundational knowledge to move into Part II: Spot FX

Reference sites:

learn.rondanini.com

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The Trading Floor with David Axtell

Foreign exchange is the largest financial market in the world—but who's actually in it?

In Episode 3, David Axtell breaks down the five key player groups: banks and dealers who provide liquidity and take proprietary positions, corporates hedging commercial exposures, asset managers building currency allocations, central banks conducting monetary policy and market interventions, and hedge funds running speculative strategies.

Each participant brings different objectives, time horizons, and information advantages. Understanding who's on the other side of your trade matters—because it shapes pricing, liquidity, and market behavior during both normal conditions and stress periods.

David shares real examples: the Swiss National Bank's multi-year defense of the EUR/CHF floor (and its eventual abandonment in January 2015), corporate treasurers caught between FX volatility and board pressure, and George Soros' famous bet against the Bank of England in 1992.

Whether you're executing hedges, managing portfolios, or trading directionally, knowing your counterparties' motivations gives you edge.

This episode is part of The Trading Floor series—a practitioner's guide to FX markets based on 35 years of institutional experience across London, Riyadh, Doha, Dubai, and Singapore.

Next Episode: Forward points and FX swaps—the mechanics that drive 60% of daily FX volume.

Based on: FX Cash Products—the book soon available through Rondanini Publishing.

Why doesn't foreign exchange trade on an exchange like stocks? Why does it operate 24 hours? And why is the US dollar at the centre of everything? In this episode, David Axtell explains the fundamental architecture of the world's largest financial market—$7.5 trillion in daily turnover—and what that structure means for anyone operating in FX. From OTC markets to liquidity patterns to the dominance of FX swaps, this is the market structure knowledge that separates professionals from tourists.

In this episode, we cover:

• Why FX is over-the-counter (OTC) instead of exchange-traded
• The three reasons scale, complexity, and customisation demand bilateral markets
• How the 24-hour market follows the sun through Asia, Europe, and New York
• Why the London-New York overlap is the "golden window" for execution
• The four main segments: Spot, Forwards, Swaps, and Options
• Why FX swaps are the largest segment at $3.8 trillion daily
• The US dollar's role as the vehicle currency in 88% of all transactions
• Five practical implications for treasury professionals and traders

Key Statistics:

• $7.5 trillion daily turnover (BIS)
• Spot: $2.1T | Forwards: $1.3T | Swaps: $3.8T | Options: $0.3T
• London handles 38% of global FX volume
• 90%+ of spot trading in major pairs is now electronic

About the Host:David Axtell has 35 years of experience in treasury and FX markets across four continents, including roles as Chief Dealer in Riyadh, Assistant General Manager at Qatar National Bank, and senior positions at HSBC Dubai, SHUAA Capital, and Crown Agents Bank.

The Book:FX Cash Products: Spot, Forwards, Swaps & Non-Deliverable ForwardsCo-authored by Luigi Rondanini and David AxtellSoon a vailable through Rondanini Publishing

David Axtell introduces The Trading Floor—why this podcast exists, and why now. From NatWest in the 1980s to building nostro networks across 120 currencies at Crown Agents Bank, David shares the highlights of a 35-year career across London, Riyadh, Dubai, Doha, and beyond.

He introduces co-author Luigi Rondanini, the young trader he hired in Saudi Arabia in 1995 who went on to systematise institutional FX knowledge into a comprehensive practitioner's guide.

This episode sets out the podcast's mission: bridging the gap between academic theory and trading floor reality.Visit David at Rondaninini