The Archegos story - what FX brokers can learn from it?
Prime Brokerage Services include actual “physical”,or cash, financing (loans,for example) and “synthetic” financing (leveraged trading in FX terms). Qualified financial institutions (Hedge Funds, Prime of Primes, Family offices) borrow money from Prime Brokerages to place leveraged orders. The amount of leverage given is determined, exclusively, based on the client profile (background, trading style, capital etc).…
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