Making Connections in the Foreign Exchange World

Andy Krieger explains how he created new relationships and shared new ideas or information to gain a better understanding of the world

I was a young trader in the mid-1980s, and I was entranced by the tremendous profit-making opportunities in the markets. The shifts in the dollar's value and cross-currency relationships were happening so fast that it was a thrilling time to be a trader. But, like many of my colleagues, I soon realized that we were all making foolish decisions based on shortsighted views.

It was then that I began to pay close attention and observe the market, trying to piece together when sharp reversals might occur. If a sell-off was followed by a rally, I would countertrade to catch the rally. The vast amounts of money in play made for many opportunities, and I enjoyed the challenge of trying to make the most of them.

I was particularly drawn to making contact with traders from all over the world. By 1985, I had established trading relationships with banks in New York, Singapore, London, Sydney, Zurich, and Tokyo, and my network of information and contacts reached far beyond these cities. I did business in Frankfurt, Toronto, Los Angeles, Chicago, Hong Kong, and even Bahrain. I could find out what was happening and execute trades in any time zone.

Developing a dealing relationship with another bank was like making a cold call. I would first check that the bank had an established credit line, then I would call and introduce myself. Before long, I would be talking with the salesperson, and as we got to know each other, we would start doing business. Over time, we would begin calling each other with ideas or information.

In exchange for information about order flows and market news, I would trade spot-currency business with other banks. These calls gave me an opportunity to gain knowledge about other cultures and their perspectives on political, economic, and military situations in every hemisphere. Some of this information was directly relevant to foreign-exchange trading, but even the information that wasn't relevant gave me a broader understanding of the world.

I loved being a trader because it felt like I had my finger on the pulse of the world. I was able to gain insights into the educational system in Singapore, family life in Japan, gambling practices in Hong Kong, and the Swiss banking system. I heard many opinions on the French, Germans, Americans, and Japanese, and it was all fascinating to me. The world was a complex, dynamic place, and I was grateful to be a part of it.

Although the way we trade these days is very different from how it was back then, I still maintain my philosophy of trying to understand the different corners of the world.