scholfield
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FXCM Inc Shares were Trading down 85% in Pre-Market Trading
YouAreNotFree
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The balance. That's what's sitting in the segregated accounts.
Any examples of this breed?
FXCM might get bailed out by Jefferies for $200mio... looks like it isn't over.
EDIT: here's the article http://www.bloomberg.com/news/2015-...ks-with-jefferies-for-200-million-rescue.html
let's take a break for a week at least.
EDIT: here's the article http://www.bloomberg.com/news/2015-...ks-with-jefferies-for-200-million-rescue.html
let's take a break for a week at least.
Alpari's version of this looks suspicious. The Interbank spreads on USDCHF were never more than 10 pips on the USDCHF for the entire period after the announcement (only max 5 pips in the 18 minutes of descent, then spiking to 10 intermittently after it bounced.
So, in my opinion, what happened was either that Alpari's risk management was completely inadequate (bucket shop game of holding positions for the spread rather than hedging them as quickly as possible) or that their computer systems failed.
So, in my opinion, what happened was either that Alpari's risk management was completely inadequate (bucket shop game of holding positions for the spread rather than hedging them as quickly as possible) or that their computer systems failed.
Boilersuit
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I'd be interested to see what happened.
I mean isn't Alpari an ECN?
FX brokerage should be fairly simple, drama free, bearing in mind the advances in software and matching networks in the last 10 yrs or so. But evidently, there's still room for improvement.
Strangely a friend of mine was talking to them just before, re partnerships.
Atleast the FCA segregation of funds is clear cut. I've never been tempted to go
for the offshore rivals who don't offer some sort of guarantees there.
The real wake up call for me was narrowly avoiding using Refco.
I think Alpari UK clients will be ok. But what about other broker clients offshore etc?
None of this **** does the industry any credit, so personally I think its quite disappointing to here about.
PS 400-1 leverage? WTF! I mean I can be an aggressive trader. But that seems rather OTT, IMO.
shadowninja
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What annoys me about this is that someone else lost my money. I don't mind losing through my own stupidity but I keep leverage low so only lost about £170.
PS Hello.
PPS I thought the bookie always wins?
PS Hello.
PPS I thought the bookie always wins?
Atilla
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Mr. Charts
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This type of apparently Black Swan event was in fact almost predictable as fixed parity rates usually fail despite central bankers and/or governments promising otherwise, especially when ECB QE looks imminent next week.
It's one of the reasons I only trade FX rarely, the risk is too great and I prefer intra day US stock trading. I've never had a Black Swan event in 14 years of trading for a living the way I do - not yet at least !
I use interactivebrokers which looks safe despite their potential losses, but maybe I shouldn't speak too soon !
Anyone who trades on huge margin of up to 400:1 is asking for trouble.
Risk control and position management are absolutely vital to trading.
It's one of the reasons I only trade FX rarely, the risk is too great and I prefer intra day US stock trading. I've never had a Black Swan event in 14 years of trading for a living the way I do - not yet at least !
I use interactivebrokers which looks safe despite their potential losses, but maybe I shouldn't speak too soon !
Anyone who trades on huge margin of up to 400:1 is asking for trouble.
Risk control and position management are absolutely vital to trading.
shadowninja
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Yep. I always think, "Anything can happen." But usually I'm thinking my PC crashes and I can't get back on in time not the broker goes pop.
spinola
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Yes, but trading FX is more safe than trading stocks ! By a long shot.
It seems a huge chaos because of excessive leverage, but , again FX has much more safe liquidity than any stock. So fx safer than stocks as an instrument to trade.
I once had a negative balance due to an opening gap. I just paid what I owed. I expect that those who lost and have a negative balance do the same and repay their debt.
tar
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Thats true if you are not leveraged , but at 400:1 or even 50:1 its very risky ... otherwise yes major currencies don't move that much ....
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I spoke with someone at the FCA and he advised to keep checking their website (searching for the word alpari) for any news. He said, that they have lunched an investigation, and in the near future information will be made available on the site http://www.fca.org.uk/.
I doubt it. Probably only what's left if any
FCA insists that firms regulated by it need to provide best execution.
So if a stop loss is trigerred 900 pips or lower clearly is poor execution.
Hence fca covers for as much 50,000 gbp.Nothing sure though.
