GBP Collapse: Business as usual at Darwinex

As you may be aware, a severe collapse in the GBP in early Asia trade has shaken the markets.

We are glad to inform that today was  business as (almost) usual at Darwinex. It wasn’t fully usual because unfortunately some of our customers were margined out and there was no market for them (and therefore, us) to stop their (therefore, our) losses.

As always, at info@darwinex.com we’ll be glad to assist you.

 

Brexit

2 replies
  1. Steven
    Steven says:

    Sorry just to make sure I understand your post correctly, do you guys cover the losses in the event of negative balance by the clients? What exactly do you mean by “(therefore, our) losses”

    Reply
    • The Market Owl
      The Market Owl says:

      Hi Steven

      contractually, we don’t cover customer losses when there’s negative equity: it’s monies owed to us.

      In practice, however, sometimes it’s uneconomical to pursue small losses from customers, and arguably the recovery cost is not worth the investment of our time.
      Hope that clarifies this. When we say our loss – it’s our loss as we have to re-imburse the counterparty at the other end of the trade out of our own pocket.

      Reply

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