Financial markets are vulnerable to all kinds of events. Most of the largest crashes that have occurred in the history of stock and investment markets came unexpectedly though they were still modelable. However, that one case with January 15th, 2015 European currency.
market was essentially an unpredictable Black Swan event.
It is important to understand the causes and effects of Black Thursday, especially for the traders and brokerage firms, since more than 90% of currency trading involves brokers as counterparties. This particular Black Swan event caused the introduction of a view that Negative Balance Protection is a necessity within the brokerage industry.
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