Dukascopy Slated to Cap Maximum Leverage of EUR/DKK, USD/DKK Trading

Dukascopy Bank has altered its 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 policy on the EUR/DKK and USD/DKK pairs, stipulating a maximum leverage of 1:10 to prevent a potential maelstrom should a recalibration of the trading range be undergone.

Nearly one week ago, Dukascopy Bank rolled out plans to endorse its 1% margin on the volatile EUR/CHF FX cross, following the tumultuous 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 experienced last month. The firm was also one of the early providers that changed its leverage back on October 12, 2014, increasing margins to 10%.

Having seen the wide-ranging bouts of volatility that can potentially result from supported currencies or recalibrated traded ranges, Dukascopy will implement its new leverage exposures beginning February 8, 2015.

The pairs under consideration are the EUR/DKK as well as the USD/DKK, which will see exposures of a maximum leverage of 1:10, taking effect on the aforementioned date. The reduced leverage will help prevent a repeat of the CHF shakeup that convulsed currency markets last month.