The Japanese unit of OANDA, a multi-asset trading provider, recently announced that because of the current market condition, it has decided to partially reduce the margin rate for corporate accounts, effective from the 17th of August 2020.
The changes to corporate accounts will take place from the beginning of trading from the 17th of August. The upcoming changes in the margin are only applicable to the online trading provider’s New York server, fxTrade. This is where currency pairs for corporate accounts are handled. According to the statement from the company, there is no change for the OANDA Japan FX Tokyo server.
In particular, the changes announced on the 8th of August are regarding the Singapore dollar (SGD) and refer to two currency pairs – GBP/SGD and NZD/SGD. For the former, the margin rate has reduced to 2 per cent, down from 3 per cent. The same change in margin has occurred for the NZD/SGD currency pair.
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Margin is the value of money that an investor needs to put forward in order to open a trade. When trading foreign exchange (forex) on margin, investors need to pay a percentage of the full value of the position to open a trade.
Throughout the coronavirus pandemic, which has caused volatile currency movements, OANDA Japan has updated its margin requirements on numerous occasions.
OANDA Rebrands FX Data and Analytics Business
The announcement on Saturday comes as OANDA revealed exclusively to Finance Magnates that it has rebranded its currency data and analytics business, giving it the new name of Foreign Exchange Data Services.
The name change aims to better reflect OANDA’s core offering to the market. It is our understanding that the rebranding has been in the works now for a couple of months, and the coronavirus pandemic has not had an impact on the launch.