OANDA Corporation Altering Margins, Capping Leverage on Select FX Pairs
- Starting next week, OANDA will have several new margin requirements for major currency pairs.
Many brokers have opted to change their margins ahead of the Italian referendum, however OANDA Corporation will be taking a different course, instead implementing some changes to its trading conditions beginning on December 5th, per a company statement.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
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 Prompting Changes
The rationale beyond the moves has to do with heightened periods of volatility, with OANDA like many other brokers navigating through turbulent times in 2016 – this includes the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum in June and the US election last month. Starting on December 5th at 17:00 EST, OANDA will institute the following changes to select currency pairs:
- JPY pairs from 3% (maximum leverage ratio of 33.3:1) to 4% (maximum leverage ratio of 25:1)
- NZD pairs from 2% (50:1) to 3% (33.3:1)
- USD/MXN from 6% (16:1) to 8% (12.5:1)
It is important to note that the changes will affect both existing and new positions, which looks to be the new norm moving forward for clients. The changes are also coming at the request of US regulators. At the same time, OANDA will be lowering the margin for its CHF pairs, including the following alterations:
- CHF pairs from 5% (maximum leverage ratio of 20:1) to 3% (maximum leverage ratio of 33.3:1)
Many brokers have opted to change their margins ahead of the Italian referendum, however OANDA Corporation will be taking a different course, instead implementing some changes to its trading conditions beginning on December 5th, per a company statement.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
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 Prompting Changes
The rationale beyond the moves has to do with heightened periods of volatility, with OANDA like many other brokers navigating through turbulent times in 2016 – this includes the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum in June and the US election last month. Starting on December 5th at 17:00 EST, OANDA will institute the following changes to select currency pairs:
- JPY pairs from 3% (maximum leverage ratio of 33.3:1) to 4% (maximum leverage ratio of 25:1)
- NZD pairs from 2% (50:1) to 3% (33.3:1)
- USD/MXN from 6% (16:1) to 8% (12.5:1)
It is important to note that the changes will affect both existing and new positions, which looks to be the new norm moving forward for clients. The changes are also coming at the request of US regulators. At the same time, OANDA will be lowering the margin for its CHF pairs, including the following alterations:
- CHF pairs from 5% (maximum leverage ratio of 20:1) to 3% (maximum leverage ratio of 33.3:1)