The FinancialThe Canadian founded broker OANDA has informed its customers in Japan of upcoming margin changes affecting Swiss Franc currency pairs. In light of the increased market volatility in global markets the broker will make such changes after the market close on May 22nd, 2020. This comes after the broker has adjusted margin requirements for other cross-currency pairs with AUD, EUR, and NZD, among others in March and April of this year.
The changes coming at the of the week include:
- CHF / JPY: 4% (previously 2%);
- USD / CHF: 4% (previously 2%);
- EUR / CHF: 4% (previously 2%);
- GBP / CHF: 4% (previously 3%);
- AUD / CHF: 4% (previously 3%);
- CAD / CHF: 4% (previously 2%);
- NZD / CHF: 4% (previously 3%);
- SGD / CHF: 4% (previously 2%).
The broker recommends that traders reduce the size of their position in advance, or make sure that they have sufficient funds in their accounts. The tightening of margin requirements may also be related to recent performance issues the broker warned about on the MetaTrader 4 platform, which did not stand up well amid elevated trading activity and volatility in the markets.