Anually the bank sends out this information to remind us of the level of protection in our bank account www.fxobsd.com
I have a very basic question regarding bank or broker level of insurance. The bank of Enland insures for each bank account owner only up to £85000. On the FX market broker guarantee an even lower level 25K or 30K EUR max, So I dont understand when HSBC let you manage account of Millions USD size, or some of you trade account size 6 figures 7figures like for the prof fund etc., how is it practical to trade?
You can not keep more than 85K on the wallet, you can not trade more than 30K EUR at a time with a broker, any amount above is at risk at any time in a trade or on the broker account, or even when transacted between brokers account to bank account ? In the past 100 yrs ago, that 85K level is enough, but now-a-days there are common property 2-bed-room worth at least more than 250K already, or even million, hundered million when changing hand, or when company merging, acquisition for zig millions USD, how is it possible one side pays money to the other, if banking maximal can guarantee to cover 85K EUR compensation, all the money deals on the markets are happening almost uninsured?
So do the large boys the big traders prop firm traders trading without insurance, like driving big cars but not knowing they aren't insurred?
You study economiy, work for banking industry or trading full time you must know, please help me with an answer you or your mentor must know the right answer.
I have a very basic question regarding bank or broker level of insurance. The bank of Enland insures for each bank account owner only up to £85000. On the FX market broker guarantee an even lower level 25K or 30K EUR max, So I dont understand when HSBC let you manage account of Millions USD size, or some of you trade account size 6 figures 7figures like for the prof fund etc., how is it practical to trade?
You can not keep more than 85K on the wallet, you can not trade more than 30K EUR at a time with a broker, any amount above is at risk at any time in a trade or on the broker account, or even when transacted between brokers account to bank account ? In the past 100 yrs ago, that 85K level is enough, but now-a-days there are common property 2-bed-room worth at least more than 250K already, or even million, hundered million when changing hand, or when company merging, acquisition for zig millions USD, how is it possible one side pays money to the other, if banking maximal can guarantee to cover 85K EUR compensation, all the money deals on the markets are happening almost uninsured?
So do the large boys the big traders prop firm traders trading without insurance, like driving big cars but not knowing they aren't insurred?
You study economiy, work for banking industry or trading full time you must know, please help me with an answer you or your mentor must know the right answer.
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