I found that some brokers significally changed margin for USA election period.
They claim “true ECN” but in realyty they take opposite side for their clients trades?
Or this margin changing is normal, and I should not worry about it?
I think they might have the right to change the margin or leverage at anytime however i also noticed emails from my brokers but i didn’t traded for the whole week of US elections as it was better to take rest rather than trading during high volatile/crazy market.
They can be counterparty to some trades what they should clearly state in their Terms of Service.
Nevertheless not all trades are covered in house some of them are hedged with broker counterparty. When significant volatility is expected brokers cut leverage to avoid losses from your hedged trade.
Found answer for own question. Sure, they will reduse own risk, and cut leverege.
Notwithstanding the fact that the SWFX – Swiss FX Marketplace is an ECN, [B]Dukascopy Bank is the counterparty of all its clients’ trades executed on the SWFX[/B]. Dukascopy Bank sends orders to the interbank market in its own name for its own needs such as hedging exposures and/or testing validity of prices received from liquidity providers. Not all clients’ trades necessarily result in hedging orders sent to the interbank market by Dukascopy Bank. In particular small trades cannot be hedged with external counterparties and therefore could hardly be executed without Dukascopy Bank’s liquidity, since external counterparties may not accept trades under a certain minimum size.
Brokers sent out warnings about this weeks before … though I did see one dodgy outfit offering an ‘Election Bonus’ :\