Forex Broker Equity Calculation

One of the most difficult challenges that Forex brokers back office staff face is reconciling the accounting methods utilized in trading platforms with those methods used by the clearing agent be it an institutional liquidity provider or prime broker. In other words retail trading platform apply P&L, commissions, swaps and other charges differently than how the clearing partner applies them and as a result aggregate equity changes on the platform do not match equity changes at the clearing partner. Since the equity changes on the frontend do not correspond to… read more →