Dukascopy Bank to Embrace 1% Margin on EUR/CHF
- Swiss bank, Dukascopy, is one of the first major forex providers in the country to reinstate its standard margin requirements on the troubled EUR/CHF financial instrument. The revised margins are to return on the 25th of January.
Dukascopy has reported that it plans to offer traders 1% margin on the volatile EUR/CHF Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term cross. Like its peers, the bank altered margins on the financial instrument as markets were hovering around difficult ground. Dukascopy is one of the first major brokerages to reinstate standard conditions as markets gradually recover from the troubles of the 15th of January in the realms of the SNB.
The firm made the announcement in a note on its website describing the situation of the Swiss franc and its stance on the matter. Its note states: “True to its vision of doing things differently, Dukascopy is going the opposite way by welcoming EUR CHF "back to the family" by aligning its margin requirements with the other major currency.”
The revised conditions are being implemented on the 25th of January, 2015.
The firm was also one of the early providers that changed 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, on the 12th of October the bank implemented new leverage rules which increased margins to 10%.
Market participants have been wary of a revolt in the Swissie and in October Dukascopy stated: “Due to the possibility of a break of the 1.2000 floor in EUR/CHF which may see significant price gaps and cause negative equity on client accounts.”
Dukascopy has reported that it plans to offer traders 1% margin on the volatile EUR/CHF Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term cross. Like its peers, the bank altered margins on the financial instrument as markets were hovering around difficult ground. Dukascopy is one of the first major brokerages to reinstate standard conditions as markets gradually recover from the troubles of the 15th of January in the realms of the SNB.
The firm made the announcement in a note on its website describing the situation of the Swiss franc and its stance on the matter. Its note states: “True to its vision of doing things differently, Dukascopy is going the opposite way by welcoming EUR CHF "back to the family" by aligning its margin requirements with the other major currency.”
The revised conditions are being implemented on the 25th of January, 2015.
The firm was also one of the early providers that changed 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, on the 12th of October the bank implemented new leverage rules which increased margins to 10%.
Market participants have been wary of a revolt in the Swissie and in October Dukascopy stated: “Due to the possibility of a break of the 1.2000 floor in EUR/CHF which may see significant price gaps and cause negative equity on client accounts.”