Traders globally continue to make life difficult for brokers – which is part of the reason so many vendors are coming up with solutions to counteract those behaviours.
But to get a sense of the problem, we decided to ask risk management technology provider Tapaas how bad things have been lately for CFD providers.
The team there were kind enough to share some limited data on the back of that, with percentage figures rounded to the nearest whole number.
You can see the results from May here. Rounding up, you can see that around 23% of oil trades were toxic last month – a huge number.
| Region | Instrument | Toxic density |
|---|
Strangely, DAX MENA traders were the most toxic – not a combination I would have expected, but perhaps a reflection of a smaller group of scammers trading the instrument in the region.
It’s worth noting here that the ‘toxic density’ percentage is a proportion of the overall trade number. In other words, the actual volume of toxic gold flow could be much larger in real terms than the amount traded in DAX.
It’s a sign more broadly of how severe the problem is abusive trading practices is. The positive is you have tools like Tapaas, alongside hedging mechanisms, which can help spot these people and reduce the negative impact they have on your bottom line.
