Dukascopy has reported that it plans to offer traders 1% margin on the volatile EUR/CHF forex 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.”
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The revised conditions are being implemented on the 25th of January, 2015.
The firm was also one of the early providers that changed leverage, 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.”