HERE ARE THE IMPACT OF CHF DROP LAST WEEK ON SOME ACCOUNTS AND BROKERS

Because of the magnitude of the EUR/CHF fall, and the size of these leveraged trades, a lot of traders lost more money than then they had deposited in their account.

Brokers like IG markets lost 30 million GBP and FXCM ended up 225 million in negative balances in it’s clients’ accounts. To put this in context, FXCM is valued at $1 Billion and made $66 million in profit up to Q3 last year. The losses are huge and, in FXCM’s case, will likely require some sort of bail-out/fire sale.