Prop Firm Funded Unicorn’s A-Book Bet Ends in Failure, Is FxPro Entering Crypto Next?
Unraveling of the prop firm Funded Unicorn
How far-reaching are the consequences of failure in risk handling for prop trading firms? The closure of Funded Unicorn, one of Germany’s top prop trading firms, exposed weaknesses in the firm’s risk management.
The firm used the much-respected A-book model to place all the risks on the market, but it did not work. The company’s collapse has now raised doubts about the model’s practicability.
“As you know, all of our funded traders were mirrored 1:1 with real company capital,” the company told its users. “This procedure was part of our transparent and fair model. But it was precisely this approach that ultimately brought us to our knees.”
Tokenized stock frenzy
And even as the prop trading…
