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Actually retail forex brokers, it is your fault

Actually FXCM (and other retail forex brokers) what happened in the wake of the SNB removing the EUR/CHF floor is your fault.

I get it FXCM. You’re trying to make sure you don’t take the blame for the damage done to customer accounts by the dramatic moves in the Swiss franc thanks to the Swiss National Bank removing its support for EUR/CHF. For me, though, the much bigger issue is the risk management side of things for the business. You nearly had one event take down the company. So while the losses suffered by your customers because the markets moved so fast standing orders couldn’t be filled is not your fault, the fact that you had to secure some quick emergency funding because you effectively are in a short option position with regards to customer accounts most certainly was.

By John

Author of The Essentials of Trading

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