FXCM Inc. (NASDAQ: FXCM)
FXCM Inc. (FXCM), a leading provider of foreign exchange, FX, and other trading related services yesterday moved up over 40% as of late afternoon trading. This run up is a continued move dating back to December 11th.
FXCM Technical Analysis
FXCM gapped up in price yesterday to $11.33, up from the prior day’s close of $11.15, which is a 2% increase on favorable news. As of 3pm Monday afternoon FXCM was trading at $16.56, a 49% increase in price. Taking a look at the daily chart, we can see that FXCM was trading at its 52 week low price of $5.26 on December 11th, making that a 214% increase off its lows. This recent move up can be contributed to a $130 million buyback program and its announcement to stay committed to the restructuring bailout agreement with Leucadia National Corp (LUK). That announcement was made on December 11th, the very next day of trading the stock closed up 53%. The 52 week high price for FXCM is $172.50 giving the stock an extremely wide range which leaves a lot of room for the stock to rise on any upward move. FXCM has a low float of 5.03 million shares and is trading over 25 times the normal daily trading volume. Stocks with this much movement and strength on high volume are good stocks to keep a close eye on as it can be a good indicator for a sustained new trend forming.
Company Profile
FXCM Inc., incorporated on August 10, 2010, is an online provider of foreign exchange (FX) trading and related services. The Company offers its customers access to over-the-counter (OTC) FX markets through its technology platform. It offers customers an agency model to execute their trades. In the agency model, when the Company’s customer executes a trade on the price quotation offered by its FX market makers, the Company acts as a credit intermediary, or riskless principal, simultaneously entering into offsetting trades with both the customer and the FX market maker. The Company operates its business through two segments: retail trading and institutional trading. The retail trading segment consists of providing FX trading and related services to retail customers, while the institutional trading segment offers FX trading services to banks, hedge funds and other institutional customers on an agency model basis. The Company owns a 50.1% controlling interest in each of Lucid Markets Trading Limited, an electronic market-maker and trader in the institutional foreign exchange spot and futures market, and V3 Markets, an electronic market-maker and trader of a diverse set of products. The Company offers three types of accounts, each designed for a particular type of retail FX trader. Its standard account is designed for those new to FX. These accounts offer trading in small increments, providing 24/7 support and access to DailyFX resources. It offers Active Trader accounts that are designed for experienced and high volume traders. Its Private Client Group receives highest level of support and service. Reuters
