What do you think about the 13 “high risk” currency discontinued pairspairs that FXCM announced?
Where? I did not get that e.mail!
Breaking: FXCM Poised to Discontinue 13 ‘High Risk’ Currency Pairs
Pairs being removed:
GBP/SEK
NOK/JPY
HKD/JPY
EUR/PLN
USD/ILS
CHF/SEK
SEK/JPY
USD/SGD
EUR/CZK
CHF/NOK
SGD/JPY
USD/PLN
USD/CZK
I guess it’ll help protect traders from themselves. Besides the SGD pairs, I don’t trade these other exotics.
Yes indeed it is there to protect the traders, I found this information on: FXCM Drops 13 ‘High Risk’ Currency PairsAtoZ Forex
The currency pairs we removed from the platform carry significant risk due to over-active manipulation by their respective government either by a floor, ceiling, peg or band. They had relatively little volume being traded by clients compared to the majors, but we still felt it best to remove these pairs due to the risk they pose.
Jason
Thank you, Jason.
Out of curiosity, would the EUR/CHF not be considered a pair carrying ‘significant risk’?
Hi PipMeHappy,
That’s a good question since you’ll notice some pairs were removed whereas others pairs such as the USD/CNH, EUR/CHF, USDTRY, etc. are still available. The margin requirement on these pairs has been increased to manage the risk.
Jason
Punctual, as always, Jason!
You should be voted ‘Broker support staff of the year’…
I think FXCM is in a rather unfortunate position.
Makes sense to get rid of currency that could essentially take them out of biz. Well there is no floor on EURCHF anymore.
But I am sure the next floor to go will end FXCM. And their clients don’t want that.
+1
I don’t even deal with them yet and he’d get my vote.
I ran across a report for 2013 I can’t remember where (old age) but there were about 8 pairs traded that made up almost all the trading volume. I don’t remember seeing any of the above pairs. And for another big surprise EURUSD, USDJYP were 1st and 2nd
Gp
I trust FXCM has evaluated the risks and made the right choice for now.
That said, all currencies are in some sort of band or under some central bank scheme.
Speaking post-SNB, Parker said the above. But he continued to say he should moderate risk more.
Agreed Arb on Acid, I think it is not a question of risk on the currency. They made the right decision for their business model. As a non-active FXCM client, I think it is better to be safe than sorry and keep their doors open.
Still good to be cautious with the CHF. The SNB’s Jordan was on the wires earlier today stating the CHF is still “significantly overvalued” and the SNB will remain active in the FX market if necessary. Article from Reuters Swiss franc still too strong, SNB may intervene: Jordan | Reuters
Jason for President :42:? …Ok, that may be a bit much :18: