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.

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Volatility 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 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)
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