in a highly leveraged market this kind of black swann seems to be inevitable. lets see how the ECB news will be handled. I am afraid the volatility and spread will be crazy.

The CHF tsunami - 15 January 2015

excerpt from FXCM client agreement Spot Forex Trading 1. Effect of "Leverage" or "Gearing" Forex Transactions carry a high degree of risk. The amount of Initial margin may be small relative to the value of the foreign currency so that transactions ...

Brokers with Negative Balance Protection

true that the only asymmetric leverage that exists is in the stock market where you buy a dollar stock and multiply by 10-20 times its value without taking any leverage risk

Forex changed forever!

I am afraid that ForexOracle will be right. without huge leverage, making a living from a moderately small account will not be possible

Forex changed forever!

thx for the info Shrike true that in oanda website it's written: Negative balances cleared* *Where permitted by regulations I wonder which country regulation dont allow that and hope no trader is locked in negative balance.

Brokers with Negative Balance Protection

Hi Thodie, I wonder if you could tell me if tickmill has a no negative balance policy.

CHF move as a broker "Stress Test" - Which tried to honor SL's?

as for interactive brokers, i read in another forum that clients in the red are bound to pay their margin call

CHF move as a broker "Stress Test" - Which tried to honor SL's?

as for fxpro they have a negative balance policy for the moment hopes they can keep it in the future. if it that so, it will gives them a huge advantage for short time frame high leveraged traders

Brokers with Negative Balance Protection

as for oanda i got them on chat - in practice they forgive all the negative client balances for this event - in theory you are liable for all the margin calls, they dont told me they have a no negative balance policy

Brokers with Negative Balance Protection

I dont think a lot of traders will profit from this. Either the broker go bust or they will enter survival mode and requote or rewrite the trades. The only guys that profit from this situation is the real economy: the swiss guys that saw all their ...

The CHF tsunami - 15 January 2015

But this is inevitable in the long term. The brokers that goes bust put the liability on the liquidity providers, tier one banks. Do you think they will still accept to do business with the brokers with the same conditions. They will require higher ...

Where is the next major move?

I think the people that lost are lucky to be in a non negative account policy broker. At least you will not have repo men coming. Not every body is in the same case sadly. You can look at the statements made by other brokers. They say that they have ...

Alpari.co.uk Discussion

I think it will be difficult for people that where positive from this move to be able to get really the gains. Here you can see that its the broker that takes the risk and not the client. The leverage offered in retail forex is crazy. In case of ...

Alpari.co.uk Discussion