Risk Management

Do You Really Know Your Forex Brokerage’s Total Exposure?

Risk management and your Forex brokerage
The most important ingredient in a brokerage’s success, besides a healthy dose of good luck, is proper risk management. In order to properly manage risk, in any given moment you as a broker have to completely and accurately understand your P/L—in real time.

A proper risk management system will allow you […]

Keep your Forex Brokerage Clients by Eliminating Spikes

How price spikes hurt your Forex brokerage
Many brokers are aware of spikes, but they mistakenly believe that their impact on revenue is minimal. While fraud inspection is not an easy job, and there are no good ways for brokers to identify all arbitrage hunters, every broker knows those phone calls from traders who suspect that their feed […]

Strategies for Forex Risk Management

Execution strategies for FX risk management
In order to minimise potentially risky scenarios, there are various execution methods at the broker’s disposal. The broker can pre-define an execution method to apply only to certain order types (Buy Stop, Take Profit etc.) or to specific amounts. Moreover, the broker can set up his general broker profit for […]

The Trade-off Between Accuracy and Speed

There are 3 common methods for a broker to provide its platform with a rate-feed. Choosing a certain method usually means conceding accuracy against speed, or vice-versa.

Assessing a rate-feed quality requires the involvement of various technologies such as: huge tick-history databases representing a substantial amount of market data-sources and benchmarks, efficient backtracking engines which can […]

Managing Forex Brokerage Risk

Proper risk management is vital for a retail brokerage.
In an industry of uncertainty, one must take all steps required to eliminate unnecessary variables. Most of the hedging strategies are based on either “trading room hedging” or “per-trader hedging”. The former keeps the trading room at a relatively high level of both risk and profit, and […]