OANDA Japan announced sweeping restrictions on silver trading effective this week, slashing maximum leverage from 20:1 to 5:1 and cutting position limits by 75% as extreme volatility continues to roil precious metals markets.
The broker will increase margin requirements for silver (XAG/USD) from 5% to 20% starting February 2, according to a notice sent to clients.
Maximum order sizes drop immediately from 50,000 units (10 lots) to 25,000 units (5 lots), while maximum open positions fall from 100,000 units to 25,000 units.
Margin Increase Threatens Forced Liquidations
The higher margin requirements will affect both existing positions and new trades. OANDA Japan warned that clients holding silver positions could face forced liquidation when the new rules take effect Monday if they don't add funds or reduce exposure beforehand.
"Depending on the account's equity, there is a risk that a stop loss (forced liquidation) will occur at the market open on February 2, 2026, when the above changes are applied," the broker stated.
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The restrictions follow similar moves by other market participants responding to unprecedented precious metals volatility . The Chicago Mercantile Exchange switched to percentage-based margin calculations earlier this month as silver and gold hit records, while liquidity provider Scope Prime adjusted spreads in response to CME's changes.
Silver And Gold Rally Intensifies Across Markets
Gold hit $5,598 per ounce on Thursday, up 3% and testing levels just below $5,600. The metal has surged roughly 30% since the start of 2026, extending a rally that began in 2025 and shows few signs of slowing.
At the same time, silver has already risen nearly 70% this year, adding to its 150% rally in 2025. The white metal's price gained another 2.8% today with no signs of slowing down.
Trading activity at broker Axi has been dominated by gold contracts as retail interest more than doubled amid the price surge. However, some industry executives have raised concerns about the sustainability of the rally, with Scope Markets EU CEO Constantinos Shakallis warning that Wall Street's $6,000 price targets may be luring retail traders into a speculative trap reminiscent of 1980.
This isn't the first time OANDA Japan has flagged risks in precious metals. The broker issued a similar caution in October 2025 when silver volatility first began to spike, warning that margin requirements could be adjusted at short notice. "This reminds me of something. I have seen this movie before and we in Cyprus had a front-row seat for the previous sequels," Shakallis wrote in a LinkedIn post Sunday evening. "It was the 'dot-com' elevators of 1999, the 'house prices only go up' frenzy before the 2008 crash, and the crypto-mania of 2021."
Broker Flags Liquidity Crunch
OANDA Japan cited "extremely low liquidity" and "high volatility" in precious metals as the primary drivers behind the restrictions. Spreads have widened rapidly as sudden price fluctuations strain market depth , while counterparty transaction costs have risen sharply.
The broker reserved the right to adjust margin rates and funding costs for both silver and gold (XAU/USD) without advance notice if market conditions worsen further. It also warned that trading in silver CFDs could be temporarily suspended altogether "in order to protect customer capital."
"We strongly recommend that you collect information by referring to reliable financial news and other sources, and that you manage your capital with sufficient margin for all precious metals transactions," the broker said.
