Despite customers reporting problems at several brokers, traders on the whole are benefitting from the spike in prices. Some brokers have indicated to Forex Magnates that their clients are overwhelmingly long.
After the rapid decline the Russian ruble has experienced following the Bank of Russia’s emergency interest rate hike of 10.5% to 17.0%, the currency's price continues to tumble. The USD/RUB has now risen over 12% to just around 73.00, well above its low of 60.80 achieved in the moments after the rate hike.
Brokers are reporting that the volatility has caused banks to remove pricing and Liquidity from the currency, thereby limiting the ability for hedging customer traders. As a result, broker customers have reported problems with order execution throughout the day, with at least two firms, Alpari RU and eToro, stating publicly earlier to clients that they have halted trading in buying the currency due to limitations from liquidity partners. Alpari even went further and has just now announced it is stopping all trading on USD/RUB and EUR/RUB.
Liquidity available but with wide spreads
The market, though, isn’t completely shut down. Several market data vendors, including LMAX, continue to be providing continuous price feeds and trading today. As a result, at many brokers, trading in the USD/RUB is business as usual, just much more volatile. However, pricing has been consistently wide, with 1-2 ruble spreads the norm much of the day. Some firms have announced that they are cutting leverage going forward in the ruble.
Nonetheless, despite customers reporting problems at several brokers, traders on the whole are benefitting from the spike in prices (those that can close positions). At eToro, their sentiment reading shows customers long/short ratio at 89%/11% while other brokers have indicated to Forex Magnates that clients are overwhelmingly long.
Philippe Gelis, CEO and co-founder of Kantox, commented on the wider situation: "For companies concerned about rouble volatility, they should aim first and foremost to protect themselves from currency risk via foreign exchange hedging products such as forward contracts to stave off the threat of further rouble depreciation against the US dollar and euro. However, many FX Liquidity Providers are now withdrawing hedging options on the rouble due to extreme volatility in the currency, similar to what occurred in 1998 when RUB convertibility stopped completely. In the next few days or weeks a recurrence of events in 1998 is a very real possibility – a complete halt to any transaction be it spot or forward."
Broker Updates
Looking ahead, several brokers have forwarded trading updates in regards to the ruble.
Saxo Bank: Trading continues with no halts during the session. But margin is being increased Wednesday to 20% for the first EUR 300,000 of clients margin collateral - previously it was 4% - and 40% for margin collateral above EUR 300,000 – which previously was 8% (effectively, maximum leverage cut to 5:1 from 25:1).
FXCM: Will discontinue trading in the USD/RUB tomorrow as they stated, “Due to the extreme instability in the Russian Ruble, FXCM will be discontinuing trading in the USD/RUB pair beginning Wednesday, 17 December. FXCM expects that key Liquidity Providers will stop pricing this pair as early as this week in anticipation of the Russian government potentially enacting currency controls.”
RoboForex: Trading suspended until tomorrow with ongoing trading limited to daily sessions of 9AM to 6PM until the end of the year. At that point trading in the USDRUB will be suspended until January 11th.
GAIN Capital: "Due to highly volatile market conditions in USD/RUB, the required margin on new and existing USD/RUB positions will increase to 20% (5:1 leverage) effective 8am ET on 17th December 2014. During this period of instability, USD/RUB spreads may widen and significant price gaps and periods of illiquidity may occur."
After the rapid decline the Russian ruble has experienced following the Bank of Russia’s emergency interest rate hike of 10.5% to 17.0%, the currency's price continues to tumble. The USD/RUB has now risen over 12% to just around 73.00, well above its low of 60.80 achieved in the moments after the rate hike.
Brokers are reporting that the volatility has caused banks to remove pricing and Liquidity from the currency, thereby limiting the ability for hedging customer traders. As a result, broker customers have reported problems with order execution throughout the day, with at least two firms, Alpari RU and eToro, stating publicly earlier to clients that they have halted trading in buying the currency due to limitations from liquidity partners. Alpari even went further and has just now announced it is stopping all trading on USD/RUB and EUR/RUB.
Liquidity available but with wide spreads
The market, though, isn’t completely shut down. Several market data vendors, including LMAX, continue to be providing continuous price feeds and trading today. As a result, at many brokers, trading in the USD/RUB is business as usual, just much more volatile. However, pricing has been consistently wide, with 1-2 ruble spreads the norm much of the day. Some firms have announced that they are cutting leverage going forward in the ruble.
Nonetheless, despite customers reporting problems at several brokers, traders on the whole are benefitting from the spike in prices (those that can close positions). At eToro, their sentiment reading shows customers long/short ratio at 89%/11% while other brokers have indicated to Forex Magnates that clients are overwhelmingly long.
Philippe Gelis, CEO and co-founder of Kantox, commented on the wider situation: "For companies concerned about rouble volatility, they should aim first and foremost to protect themselves from currency risk via foreign exchange hedging products such as forward contracts to stave off the threat of further rouble depreciation against the US dollar and euro. However, many FX Liquidity Providers are now withdrawing hedging options on the rouble due to extreme volatility in the currency, similar to what occurred in 1998 when RUB convertibility stopped completely. In the next few days or weeks a recurrence of events in 1998 is a very real possibility – a complete halt to any transaction be it spot or forward."
Broker Updates
Looking ahead, several brokers have forwarded trading updates in regards to the ruble.
Saxo Bank: Trading continues with no halts during the session. But margin is being increased Wednesday to 20% for the first EUR 300,000 of clients margin collateral - previously it was 4% - and 40% for margin collateral above EUR 300,000 – which previously was 8% (effectively, maximum leverage cut to 5:1 from 25:1).
FXCM: Will discontinue trading in the USD/RUB tomorrow as they stated, “Due to the extreme instability in the Russian Ruble, FXCM will be discontinuing trading in the USD/RUB pair beginning Wednesday, 17 December. FXCM expects that key Liquidity Providers will stop pricing this pair as early as this week in anticipation of the Russian government potentially enacting currency controls.”
RoboForex: Trading suspended until tomorrow with ongoing trading limited to daily sessions of 9AM to 6PM until the end of the year. At that point trading in the USDRUB will be suspended until January 11th.
GAIN Capital: "Due to highly volatile market conditions in USD/RUB, the required margin on new and existing USD/RUB positions will increase to 20% (5:1 leverage) effective 8am ET on 17th December 2014. During this period of instability, USD/RUB spreads may widen and significant price gaps and periods of illiquidity may occur."
Cheetah Fund Investors Lose $9 Million in Alleged Fraudulent Scheme
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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