2015 has been tipped by some analyst to be very volatile. What we have seen so far supports this with a rising dollar, plummeting oil prices and economic uncertainty developing in Europe. On Thursday 16th of January, the Swiss National Banks announced that they had removed a currency cap that limited the Swiss franc’s growth against the joint currency. The immediate fallout was devastating. The euro plummeted to its lowest point in 13 years and CHF rose significantly, throwing currency exchange markets into mayhem. The highest profile companies to be affected by this were FXCM, who lost roughly $225 million, and Alpari, who declared insolvency the next day.
Apart from raising question on the wider market, and what else will cause radical shifts in stock price, many people were wondering if Alpari’s insolvency – as well as the significant losses made by many other spread betting and CFD trading companies – could have been avoided.
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