Behind FXCM Inc's (FXCM) Huge Rally

FXCM is enjoying a huge rally as short sellers abandon their positions

by Kirra Fedyszyn

Published on Dec 28, 2015 at 4:19 PM
Updated on Jun 24, 2020 at 10:16 AM

FXCM Inc (NYSE:FXCM) closed 41.2% higher today, at $15.74 -- and earlier hit a seven-month high of $19.74. Of course, the stock is still sitting on a 90.5% year-to-date loss. The shares took a nosedive in late January, after the Swiss National Bank made a surprising policy change that sent its currency soaring 41% against the euro, leaving FXCM with a negative $225 million equity balance. FXCM was later saved by a $300 million bailout from Leucadia National Corp. (NYSE:LUK).

Today's rally comes on the heels of data showing that short interest on FXCM fell by 27% in the most recent reporting period alone. In fact, short interest now accounts for a relatively modest 8.2% of the stock's available float -- which could be covered in just one day of trading, at average volumes.

However, today's surge didn't occur on average volume. North of 6.2 million FXCM shares changed hands today -- an amount that arrives in the 92nd annual percentile, according to Trade-Alert. In other words, the remaining FXCM Inc (NYSE:FXCM) bears may have already stampeded for the exits.


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