Some major forex brokers cut leverage due to Coronavirus-induced volatility

Broker Discussion
1

A number of brokers, namely Dukascopy, IG, Admiral Markets, and Oanda Japan have made the decision to lower leverage for some instruments due to the increased market volatility caused by the global health crisis.

Three brokers changed leverage last Friday – Admiral Market, Dukascopy and IG. Dukascopy decreased leverage for for commodities, indices and precious metals to 1:30, while IG increased the range of minimum margin rates on new positions for the weekend on indices, FX/gold, and oil.

Admiral Markets decreased to reduce the maximum possible leverage for professional clients on four oil-related CFDs.

Oanda Japan on the other hand, has increased the margin requirement for certain forex pairs since March 30, 2020 and also announced they will do so for AUD/SGD, AUD/CAD, and CAD/JPY, which will be traded with a maximum of 3% margin. Previously it was 2%.

I don’t think these measures are surprising in any way, the question is which other brokers will follow suit?

4 Likes
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I think it is a normal response due to the pandemic at hand. Forex trading will definitely be affected.

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3

Hello,
I think, this is humanistic which every brokers should follow.

4

I hadn’t noticed any changes in spread or margin requirements but I’ve only been spreadbetting GBP/USD (I’m in the UK).

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5

Everything is affected, not just forex. I wonder whether we’d ever return to our old normal.

6

I just want to be normal again! :sob: :sob: :sob: :sob:

7

Me too, but I’m afraid we won’t see a return to normal until there’s a vaccine.

8

Cut leverage on my Hotforex platform before others brokers did that for their clients - can I consider myself smart :smiley: ?

Advice to all newbies bear markets are very dangerous and unpredictable. You can be right in determining direction but bad risk and capital management will spoil even perfect guesses.

1 Like
9

You had common sense for sure. As for smart, I think people who trade forex successfully usually are. :smiley:

10

Negative WTI proved something impossible can happen - futures buyers can incur losses trading even WITHOUT any leverage. A lot of traders went bust because of yesterday move, got oil leverage additionally reduced on my Hotforex and Tickmill platforms, good precautionary move I should say.

11

I agree. I have to say I did a double take when I saw that price. And then I did a few more takes just in case. :frowning: