Gaitame Broker to Cut OTC Leverage in Half

Japanese foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term brokerage Gaitame announced today it is about to make margin changes in over the counter (OTC) trading - starting April 8, 2016, it will be cutting 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 trading in half. The online broker’s website informed traders that the company will make the changes following the completion of a period of maintenance, reducing 200:1 leverage to 100:1. The broker added that the changes will be revised, and traders will be kept informed of any future developments through the company's website.

Gaitame did not explain the planned leverage cutting, and it is unclear whether the move is related to the continuing fall in trading volumes. As December 2015 metrics are about to be published in the coming days, November’s data showed a decline in trading volumes, alongside a slight rise in total accounts numbers.

Trading volumes have declined by 25 percent to ¥18 trillion ($148 billion), while total trading accounts numbers increased by 1800 to 405,109. The total amount of funds deposited at the brokerage has also increased somewhat, marking ¥11.2 trillion from ¥11.1 trillion in October. Nevertheless the figure remained below the record high that was set in July last year, at almost ¥11.3 trillion.