Canadian Regulator Hikes Australian Dollar Margin Requirements
- The latest move by the Canadian self-regulatory organization, IIROC affects traders of the Australian dollar against the greenback.
The Australian dollar (AUD) has become the latest currency to get under the radar of new margin requirements for retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term traders in Canada. The self-regulatory organization in charge of the maximum permitted leverage on currency pairs has hiked the requirements on the AUD/USD currency pair to 3.3%, up from 3.0%.
Last month, the same level was applied to the EUR/USD pair after 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 Read this Term across the market increased dramatically, leading to changes to the framework enforced by the Investment Industry Regulatory Organization of Canada (IIROC).
Rapid swings in oil prices have led to increased fluctuations of the Canadian dollar’s (CAD) exchange rate, which is making it more difficult for local forex traders relying on high margin-level utilization to accordingly plan their systems.
The Canadian regulatory environment is quite unique with its kind of floating margin requirement agenda. IIROC takes charge of setting margin requirements for different currency pairs.
With oil prices becoming very volatile during the past year, the Canadian dollar has began fluctuating more widely against its major counterparts. Only a couple of months ago the floor for leverage on the EUR/USD pair was 2 percent.
North American regulators have been taking a harsher stance on maximum leverage for years. Profitability of traders in the region according to the batches of statistics which have been published by watchdogs is much higher than in Europe. In this respect, the regulatory bodies in North America have been way more successful than their European counterparts.
In the final quarter of 2014, 35.3% of U.S. forex traders were in the black. The numbers from European countries such as France and Poland have been dramatically lower.
The Australian dollar (AUD) has become the latest currency to get under the radar of new margin requirements for retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term traders in Canada. The self-regulatory organization in charge of the maximum permitted leverage on currency pairs has hiked the requirements on the AUD/USD currency pair to 3.3%, up from 3.0%.
Last month, the same level was applied to the EUR/USD pair after 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 Read this Term across the market increased dramatically, leading to changes to the framework enforced by the Investment Industry Regulatory Organization of Canada (IIROC).
Rapid swings in oil prices have led to increased fluctuations of the Canadian dollar’s (CAD) exchange rate, which is making it more difficult for local forex traders relying on high margin-level utilization to accordingly plan their systems.
The Canadian regulatory environment is quite unique with its kind of floating margin requirement agenda. IIROC takes charge of setting margin requirements for different currency pairs.
With oil prices becoming very volatile during the past year, the Canadian dollar has began fluctuating more widely against its major counterparts. Only a couple of months ago the floor for leverage on the EUR/USD pair was 2 percent.
North American regulators have been taking a harsher stance on maximum leverage for years. Profitability of traders in the region according to the batches of statistics which have been published by watchdogs is much higher than in Europe. In this respect, the regulatory bodies in North America have been way more successful than their European counterparts.
In the final quarter of 2014, 35.3% of U.S. forex traders were in the black. The numbers from European countries such as France and Poland have been dramatically lower.