all trading is risky. I was locked limit down for 3 days once in cattle. Talk about a hopeless feeling. as for fx, it was also very wild when SNB pegged, so avoiding pegged currency really isn't a sure thing, because with no notice it could possibly be pegged to something (although I can think of much better things to worry about) no matter what you are trading the most likely cause of loss is not the market or the broker but the trader
There's a difference between "debit" and "uncollectable debit". The firms have full recourse against customers and will likely recover a large percentage of the (temporary) debits.
Anyone on the other side, suddenly became rich in about 3mins, then likely took most of the profit out and sat there nervously hoping it would hit there account and not be reversed or anything. That's what I'd of done! Small accounts running into 100K debt in seconds, no way a SL would get you out anywhere near in time.
Alpari all but gone: Alpari UK Placed in Special Administration by FCA as No Deal Has Been Reached - See more at: http://forexmagnates.com/alpari-uk-declared-insolvent-deal-reached/#sthash.Dj0OekEX.dpuf
Here's an FXCM business update we just released: Strong Operating Metrics Through Thursday, January 22, FXCM's month-to-date retail customer trading volume, which includes all retail FX and CFD volume, is $406 billion* with 30% coming from the last 5 days alone, which included a U.S. bank holiday. Average retail customer trading volume per day during this period is $27 billion.* As of January 22, tradable accounts were 224,547, and client equity was $1 billion. "A week after the unprecedented movement of the Swiss Franc, and our financing agreement with Leucadia, FXCM continues to operate in the normal course of business. All of our entities have capital in excess of regulatory requirements. As our month-to-date metrics show, FXCM continues to be a global leader in retail FX with volumes on pace to set a record. We are especially thankful for our customers' loyalty and support," said Drew Niv CEO of FXCM. Niv continued, "The financing we received from Leucadia has strengthened our balance sheet and gives us the opportunity to grow our core business while reducing our debt through the sale of non-core assets. We anticipate that the proceeds from these sales and continued earnings, we can meet both near and long term obligations of our financing, while preserving the strength of our franchise." Richard B. Handler, Chief Executive Officer, and Brian P. Friedman, President of Leucadia, commented: "We view FXCM as our next opportunity to work with an investee company to create long-term value for all stakeholders, including FXCM's dedicated employees and customers. We look forward to assisting Drew Niv and his team to develop the liquidity opportunities to repay last week's emergency financing and then, as the long-term investors we are, to exercising the patience and diligence needed to maximize the value of FXCM over time as we strive to do for every investment in our portfolio, many of which we have held for the long term, and, in some cases, for over a decade." *Amount excludes volume generated by clients with negative balances following the Swiss National Bank's decision to abandon the maximum exchange rate of 1.2 Swiss Francs per Euro. Full statement: FXCM Provides Business Update (NYSE:FXCM) As our CEO Drew mentioned, thank you to our traders for your continued support. I appreciate your patience while we work on answers to your most pressing questions, and I will continue to provide more information as I am able to. Have a great weekend! Jason
Ok..ok. All I heard was that Blackrock was interested in building its forex business because the Custody Banks were caught gouging their customers. I thought it was common knowledge. I am still waiting on word from a friend of a friend how their collections on blown accounts is going. Things should be going OK since CHF bounced.
So one has to wonder if someone might have known something prior to the 15th or if it was just a "coincidence...": Compare volume of the proceeding days as well. The 14th had magnitudes more compared to previous days: The only possible explanation (aside from the unspoken obvious) was FXCM releasing updated guidance and monthly metrics on the afternoon of Wednesday the 13th. Seems like a pretty big jump there for a simple guidance update (which wasn't breaking news or alarming) based on past company events.
Pure coincidence. Banks or anyone else is not known to go get people. I have seen no proof of that. Think ! How can they go get people if they don't know what the name of these people are or where these people live ?