FXCM Inc shares trading at below $2 in premarket trading


This isn’t a good sign.

Shares of retail forex broker FXCM Inc (NYSE:FXCM) are trading in the Friday premarket at below $2 per share, about 85% off their closing price of $12.63 on Thursday. As at the time of writing FXCM’s premarket price is sitting at about $1.90.

The message is clear – traders do not expect FXCM to survive.

FXCM premarket trading

FXCM premarket data. Source: Google Finance.

FXCM reported yesterday that its clients experienced significant losses after the huge moves in Swiss Franc CHF pairs Thursday. FXCM clients generated negative equity balances owed to FXCM of approximately $225 million, and as a result FXCM may now be in breach of some regulatory capital requirements.

Whether or not FXCM can weather the $225 million loss remains to be seen. But for now, stock market investors are clearly voting with their feet and exiting the stock.

We would expect FXCM to put out some sort of statement soon, if not before US equity markets open at 9:30am ET. Stay tuned to LeapRate.

Related News

arrow

FXCM Inc shares trading at below $2 in premarket trading

38

Send this to a friend

Fill out the form below for more information
for lising in LeapRate's Forex Yellow Pages

Please enter the company name, email address to reach you and phone # (optional):

Please fill out the message field to the right for any questions or special inquiry: