XM.COM Alters Margin Requirements with SNB in Focus
- Potential changes by the SNB has XM.COM changing its leverage in a bid to protect clients.
XM.COM will be implementing margin changes on all Swiss franc (CHF) pairs in anticipation of possible action out of the Swiss National Bank (SNB) – the changes will help protect clients from any broad changes to the Swiss currency’s value.
On Monday March 20, 2017, XM.COM will alter its margin requirements on all CHF pairs, including mandating a margin requirement that is two times the margin set as per account Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders . Previously this was set to four times the margin set as per account leverage – the new improved margin requirements for pairs including CHF will apply to both new and existing positions.
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The changes come at a time when the SNB could embark on a move to potentially cut its interest rates – by extension, it could also ramp up its currency purchases to help mitigate the Swiss franc’s value. This sentiment was echoed by the SNB’s Chairman Thomas Jordan earlier this week.
An additional layer of uncertainty applies to the Swiss franc, given its status as a safe haven currency, as elections forthcoming in both Italy and Germany remain interesting developments that could trigger more 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 on the continent. The SNB’s status as a wildcard also rings true given its history and snap decision-making that caught currency markets off-guard over two years ago.
XM.COM will be implementing margin changes on all Swiss franc (CHF) pairs in anticipation of possible action out of the Swiss National Bank (SNB) – the changes will help protect clients from any broad changes to the Swiss currency’s value.
On Monday March 20, 2017, XM.COM will alter its margin requirements on all CHF pairs, including mandating a margin requirement that is two times the margin set as per account Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders . Previously this was set to four times the margin set as per account leverage – the new improved margin requirements for pairs including CHF will apply to both new and existing positions.
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The changes come at a time when the SNB could embark on a move to potentially cut its interest rates – by extension, it could also ramp up its currency purchases to help mitigate the Swiss franc’s value. This sentiment was echoed by the SNB’s Chairman Thomas Jordan earlier this week.
An additional layer of uncertainty applies to the Swiss franc, given its status as a safe haven currency, as elections forthcoming in both Italy and Germany remain interesting developments that could trigger more 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 on the continent. The SNB’s status as a wildcard also rings true given its history and snap decision-making that caught currency markets off-guard over two years ago.