Online Trading as a Business Model - the defensive way!
Trading as a business
If you're going to develop a business model for your trading activities, you should also consider the technological risks you're going to expose yourself to - and develop counter measures to prepare for the worst...
O.K., this information on defensive measures to ease disaster recovery is not about making changes to your hard- and software to make it more bullet proof. These measures are documented under "Online Trading Technology".
With your improved trading pc's, what's next?
What follows is stuff that you need to think about and implement, even if you didn't yet create a high availabiltiy Forex trading workstation:
Have fall-back methods to reach your Forex broker:
- Have a cell phone ready - your internet access media may well be your phone company (very often so with DSL access), so make sure you also have a cell phone ready as well.
- Make sure you know all alternate ways to contact your broker!
- Have phone- and faxnumber ready. You'll feel pretty foolish if you need to search for this information when you need it real bad!
- If you are forced to close a position by fax, it's nice to have developed a standard form to jot down your information. Make multiple photo copies of this fax form and store them within easy reach.
- Also document how to validate your identity when calling your broker.
- It might also make sense to go through the motions before you really need it as a fall-back meaure. Open a tiny position during the dead hours of a day, and when you want to close it, call your broker to have him close it. How long did that take?
Have a fall-back Forex account in place
What good is a fall-back Forex account? Well, it really is your last line of defense, for those situations that you cannot reach your Forex broker, whatever you tried.
For this situation, a fall-back Forex account allows you to open opposite positions of those that you want to cover.
Of course, this is not a 100% fail-safe solution, i.e. you will never be able to hedge your complete risk. A fall-back Forex account will contain your risk to a fixed level, which is defined by both the time interval passed to the moment that you resort to this last line of defense - and by the current volatility of the market.
So, what is this insurance policy going to cost you? Basically what it takes to open and capitalize a Forex account. If trading the Forex market is your business, think about it. A fall-back account might save your day - and your bottom line!
Online Trading | Forex Trading as a Business