FXCM plunges after revealing Leucadia bailout terms

US foreign exchange broker FXCM shares plunged Tuesday after revealing further terms of a Leucadia bailout it secured last week amid sharp losses from Switzerland's lifting of its currency cap.

Investors, who initially were encouraged by the rescue by Leucadia National Corp on Friday, took fright after FXCM released late Monday further details of the $300 million two-year loan agreement, showing the interest rate could rise to a whopping 17 percent, above the 10 percent previously announced.

In addition, Leucadia would receive a percentage of proceeds from any sale of assets and, beginning in three years, it could force the sale of the company.

Currency rates are displayed at an exchange office in Geneva, Switzerland, on January 15, 2015 ©Fabrice Coffrini (AFP/File)

FXCM shares plunged 88 percent to $1.51 in midday trade as markets reopened after Monday's holiday.

FXCM Inc. one of the worst-hit forex traders after the Swiss National Bank's unexpected decision Thursday to abandon the cap against the euro that sent the Swiss franc soaring.

Trading in FXCM shares had been suspended Friday after the online retail broker warned it faced problems meeting regulatory capital requirements after clients ran up huge losses which their accounts could not cover.