Once Bitten, Twice Shy: What Brokers Started Limiting Leverage Ahead of Pivotal ECB Move?

The European Central Bank is expected to announce on Thursday what action it will take with regard to its quantitative

risk and compliance in word tag cloudNothing makes companies more alert to risks than a severe shock to the system. Following the SNB decision to stop the CHF peg, some brand names in the FX trading industry were left reeling.

Determined to avoid a similar fate as much as possible , brokers are now paying more attention to the risk of exposure to a particular currency ahead of expected volatility.

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This Thursday, the European Central Bank is expected to announce what action it will take with regard to its quantitative easing program. Whatever the ECB announcement will be, high volatility might follow on all euro pairs. Making things worse, the Greek elections are on Sunday and traders around the world are waiting to see what type of government might come out of it. Will it be one likely to abandon the euro or not?

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Under these circumstances some prudent brokers have started to limit leverage:

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We will be updating the list when new announcements are made.

 

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