As Chief of Staff of a top Forex technology solutions company, I am frequently asked about the long term implications of major market movements. The global financial markets are undergoing the largest downturn since 2008, with the current turmoil in the markets having started with China. In recent years, China encouraged a real estate bubble, […]
As a leading Forex technology provider, Leverate has been watching with interest as the number of IBs and affiliates looking to open a Forex brokerage skyrockets. Over the past few years, I’ve talked to lots of potential brokers, and while some of them come to us with a complete acceptance of the effort involved in […]
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 […]
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 […]
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 […]
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 […]
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 […]