The stock was trading @ 1.49 in the premarket when it was halted.
After the news of the Leucadia $300 million assistance the stock was trading around $4 in extended hours.
FXCM with Sierra Charts - Discussion and alternatives 8 replies
Elliott Waves discussion 4 replies
FXCM gets another CFTC fine, while Drew Niv leaves FXCM UK board 17 replies
Euro/Dollar discussion 9 replies
Forward Testing Discussion Thread 241 replies
DislikedNo Dealing Desk and traders owning money to FXCM: http://www.bloomberg.com/news/2015-0...iss-shock.html Can somebody explain this ? maybe is a silly question, but if FXCM uses the NDD system, how come that traders owe money to FXCM and not to other entities at the other side of the NDD ? FXCM states they don't trade against their clients and they make money only from commisions.Ignored
DislikedIm typing this from my phone so bear with me. I think a lot of the freak out with FXCM is really unwarranted. According to their financials, they have roughly $1.2 billion in "customer funds". At the same time, they held roughly $136 million in cash. When the crash in the EURCHF happened, roughly11% of their accounts were in EURCHF, 99% of which were long. Those accounts were all wiped out in the crash and couldn't be margin called because liquidity providers stopped making markets in CHF products - that's the speculation from Credit Suisse. I know...Ignored
DislikedNo Dealing Desk and traders owning money to FXCM: http://www.bloomberg.com/news/2015-0...iss-shock.html Can somebody explain this ? maybe is a silly question, but if FXCM uses the NDD system, how come that traders owe money to FXCM and not to other entities at the other side of the NDD ? FXCM states they don't trade against their clients and they make money only from commisions.Ignored
Dislikedi am US based, so rules may apply differently - i guess in UK you don't have to deal with the FIFO "blessing". it is just too confusing. also, 1:50 leverage days appear numbered http://www.forexfactory.com/news.php?do=news&id=522160Ignored
DislikedSupport Your USA Forex Broker! To Retail Traders, FXCM and all Other USA Brokers, Well, if FXCM had a Dealing Desk operation taking the counter-party side of all the retail trades, they would have ended up making a small fortune! Retail traders should not be concerned who is the counter-party to their trades. There always has to be one, no matter who it is. In the case of FXCM, apparently the counter-party was the market makers themselves. And so once again these bastard Robber Bank MMs ripped off a bunch of people, including the "no dealing desk"...Ignored
Disliked{quote} when the drop happened X number of accounts had long positions, Normally FXCM would have exit those positions on behalf of the accounts when they either hit stoploss level or got past margin call. In this case the prices dropped well below those levels before anyone could even think of exiting and of course liquidity providers were not quoting so the positions simply could not be exited. by the time they were exited the exit levels would have left the a lot of accounts with a negative balance....Ignored
Disliked{quote} Maybe there should be a pre-margin call that looks ahead of the stop and closes out the trade if there is no more liquidity at that time. This case would be executed in cases of catastrophy. However, its possible that the next minute or two liquidity returns and the pre-call would be rendered early. Just overthinking perhaps on my part ...Ignored
Disliked{quote} Seriously? A "pre-margin call that looks ahead of the stop...." WTF? If you could do this, why wouldn't you just make it a "pre-take profit call" that looks ahead into the future to see if you're going to hit your take profit level. If you do, it takes the trade, if not it doesn't.Ignored
Disliked{quote} I didn't say take profit. I said margin call in a catastrophic case of looking ahead if there is enough liquidity to protect the broker and trader.Ignored
Disliked{quote} his hands were tied. Remember FXCM is an Public company, compared to many other private companies. Any information he shares will be considered insider trading if it is not known to the public already. It is more an legal issue than anything else.Ignored
Disliked{quote} I kind of agree with that ... . When these sort of things occur, the Legal Department generally takes over and tells everyone to shut up and let the Public Relations Department do the talking (after, of course, running any statement through Legal) ... . That being said, I think what we got beyond the $225 million short fall press release was virtual silence until the press release about their being in talks to obtain funding through Leucadia; that was an awfully long and uncomfortable time for concerned clients who were thinking in the back...Ignored
Disliked{quote} The loan at least get FXCM back to business, and could resume their stock trading. Indeed they bought some time to get the problem fixed, but it won't be easy. I just wonder if they would make any change towards policies/ terms and condition to customers after this incident.Ignored