IIROC Raises Margin Requirements on MXN and EUR Pairs

The Investment Industry Regulatory Organization of Canada (IIROC), the nation’s self-regulatory organization, has announced an additional alteration to its margin requirements on select foreign exchange (FX) pairs including the Canadian dollar (CAD), following a periodic change in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, according to an IIROC statement.

The IIROC maintains a mandate for the handling of the domestic regulatory environment in Canada – the group enjoys a unique structure as it regularly updates FX margin trading requirements subject to FX volatility. Recently, the IIROC issued a series of changes to the Canadian pairs with the Mexican peso and the euro.

Furthermore, the IIROC has revealed a revised table for all of its margin requirements of different currency pairs, with the changes to the Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term ratio of the euro yen vs. the Canadian dollar and the Mexican peso vs. the Canadian dollar.

Starting from February 25, the margin requirements on the EUR/CAD pair will be raised to 3.9% from 3.0%, while on the MXN/CAD, FX traders in Canada will also see a climb to 3.9% from 3.0%. The aforementioned FX spot risk margin rates replace a previous list provided by the IIROC back on February 16, 2016.

A full list of the IIROC’s rates, including its basket of twenty-one currencies as of February 18, 2016 can be accessed by the following link.