We may not hedge a client’s position or post the trade “straight-through” (known as straight-through processing or STP) and instead, we set the prices at which we are prepared to deal with you.
In some cases, client trades are ‘hedged’ by passing the equivalent volume of instruments traded through to a liquidity partner, thereby mitigating client risk resulting from adverse market movements. We also conduct regular surveillance of our client-to-liquidity provider exposure to ensure any discrepancies that may arise are corrected as appropriate. This may from time-to-time involve bulk purchases of a given currency, security, or index with a liquidity partner which are generally infrequent and immaterial in size.
The performance of Lucror Ltd. is contingent on prudent risk mitigation practices. This is achieved by conducting frequent surveillance and monitoring. Factors that may impact Lucror Ltd.’s decision to hedge a client’s trades include, but are not limited to:
Toxicity of Flow: Trades or clients that are considered to be employing latency arbitrage techniques.
Volume: Extraordinary volume of trades or total trade size is larger than our risk tolerance.
Performance and Account Type: Professional traders, Money Managers, Sophisticated Investors, and/or individual accounts based on prior performance.
Cash Balance: The number of funds deposited may indicate a need to hedge all trades given it may represent larger trade volume or aggregate size/volume of trades.
Lucror Ltd. may utilize a number of external liquidity partners using aggregation technology designed to maximize the commercial viability of each hedged trade, in turn, this enables us to provide our clients with more competitive market spreads.

Lucror Ltd. is dedicated to protecting your privacy and safeguards your personal and financial information with maximum care. We employ leading security software and systems and have strict procedures in place to protect your information.