@DragonSGA We have to control exposure:
Let’s look at an example: Retail clients have a 1:10 leverage so they can easily purchase 100 or 1000 units of Oil. If we have, let’s say, 10,000 clients who purchase on average 500 units, that’s a notional value of → (10,000 x 500) x 38 = $190,000,000 in notional value exposure, just from Oil.
Taking such risk is out of the question & hedging it is also becoming more expensive. Contacting the FCA would only get you a confirmation that this is what an adequately risk-managed broker should/must do.
I hope this perfectly illustrates why one cannot just infinitely accept orders & must control exposure since there isn’t an infinite amount of money laying around.
P.S. It’s now 250 on all 8 contracts.