Estimating Expected Cost - Large Trade Size

In our latest publication, we address the challenge of predicting expected spread costs for FX trades exceeding 100 million. The task of estimating the costs associated with such substantial trades is an industry-wide challenge, primarily due to the scarcity of large trade data. Traditionally, voice traders were asked with making these cost estimations, a method that often leaned more towards intuition than statistical analysis.

BestX, recognizing the inherent limitations of this traditional approach, has pioneered a novel method to tackle the problem. We've incorporated the widely-recognized ReLU (Rectified Linear Unit) function as a foundation to model these costs with increased precision. To ensure our clients are fully informed, BestX provides both an written paper and a video presentation outlining the rationale and mechanics of our innovative model.

Please email contact@bestx.co.uk if you are a BestX client and would like to receive a copy of the paper, which is also hosted within our FAQ section of the UI.