FxPro sets maximum trading leverage at 50x ahead of Greece referendum | Forex Factory

  • FxPro sets maximum trading leverage at 50x ahead of Greece referendum

    From leaprate.com

    After today’s volatile session surrounding the latest U.S. employment numbers, the elephant in the room still remains – FxPro’s dealing desk is taking no chances regarding funds safety of the brokerage and clients heading into this weekends Greece referendum vote. FxPro, the leading FCA and CySEC regulated broker has today sent out a notice to clients regarding the Greek debt crisis and upcoming referendum taking place on Sunday July 5th. Due to the surrounding risk circumstances regarding the event, FxPro is taking a prudential approach. As such, the broker’s dealing desk has decided to increase margin ... (full story)

Comment Options
Heuristics
Jul 3, 2015 6:14am
Permalink
Quoting Ranmalpg
I couldn't agree more! but unfortunately it looks like more brokers are jumping the bandwagon and cutting leverages -and its really unfair
This is another way to git rid of undesired open positions!
If brokers really want to protect themselves AND their clients, then freezing all EUR and CHF pairs and only decrease leverage for all EUR and CHF crosses (increase required margin for only those pairs) and NOT reducing the account leverage!
Decreasing the Account leverage while open orders were basically calculated using a given leverage, is the same as if broker just go ahead and close most (if not all) open positions!
I hope most traders review their brokers agreement whether or not a sudden ACCOUNT leverage is tolerable by the trader! if so most retail trader should close their existing account and get whatever left before their account get robed off by this unregulated loophole .
Reply
Heuristics
Jul 3, 2015 10:49am
Permalink
Quoting iumoren
I quite appreciate all your points.

You are mathematically-minded and am sure Forex MUST be "friendly" with you.

I would have elaborated on these points much earlier, but believe it makes no sense talking if you are not understood or heard. But, happily, there are people like you.

All the tricks of leverage reduction get at anywhere for traders. All benefits go to Brokers in case of any "collapse".

I must emphasize that "sudden leverage reduction" is equivalent to this analogy:

"A certain government or private investor builds a big...
Yes iumoren you did well phrase it.
I do like your point too Hft.master
Reply
Heuristics
Jul 3, 2015 11:33am
Permalink
Quoting Guest
Does anyone have an idea what the GAP could be over the weekend?
It depends on the voting outcome! that's way it was scheduled on a weekend on the first place!
The magnitude and direction is yet to be relieved on the next market open.
Reply
iumoren
Jul 3, 2015 4:59am
Permalink
I can openly ARGUE with FxPro that cutting Leverage to 1:50 is not a prudent approach.

If there will be loses amid satanic volatility at Greek referendum, leverage reduction will not help anyone. My conclusion is drawn from 15th January's events, when even corporate clients of Alpari UK (and other brokers) with 1:100 leverage lost EVERYTHING at SNB's removal of cap from EUR/CHF pair.

I can competently say with 100% confidence that limiting MARGIN LEVEL is the BEST tool to use in these circumstances.

If anyone is ready to argue with me, please go ahead.

Damn it! Can't agree to staking more money when loses can be inevitable if there will be such.
Reply
Ranmalpg
Jul 3, 2015 5:36am
Permalink
Quoting iumoren
I can openly ARGUE with FxPro that cutting Leverage to 1:50 is not a prudent approach.

If there will be loses amid satanic volatility at Greek referendum, leverage reduction will not help anyone. My conclusion is drawn from 15th January's events, when even corporate clients of Alpari UK (and other brokers) with 1:100 leverage lost EVERYTHING at SNB's removal of cap from EUR/CHF pair.

I can competently say with 100% confidence that limiting MARGIN LEVEL is the BEST tool to use in these circumstances.
I could'nt agree more! but unfortunately it looks like more brokers are jumping the bandwagon and cutting leverages -and its really unfair
Reply
iumoren
Jul 3, 2015 5:51am
Permalink
Quoting Ranmalpg
I could'nt agree more! but unfortunately it looks like more brokers are jumping the bandwagon and cutting leverages -and its really unfair
Regrettably, that is what they are doing.

Decreasing leverage is the trickiest way to get more cash into the system from Forex traders.
Reply
iumoren
Jul 3, 2015 7:06am
Permalink
Quoting Heuristics
This is another way to git rid of undesired open positions!
If brokers really want to protect themselves AND their clients, then freezing all EUR and CHF pairs and only decrease leverage for all EUR and CHF crosses (increase required margin for only those pairs) and NOT reducing the account leverage!
Decreasing the Account leverage while open orders were basically calculated using a given leverage, is the same as if broker just go ahead and close most (if not all) open positions!
I hope most traders review their brokers agreement whether or...
I quite appreciate all your points.

You are mathematically-minded and am sure Forex MUST be "friendly" with you.

I would have elaborated on these points much earlier, but believe it makes no sense talking if you are not understood or heard. But, happily, there are people like you.

All the tricks of leverage reduction get at anywhere for traders. All benefits go to Brokers in case of any "collapse".

I must emphasize that "sudden leverage reduction" is equivalent to this analogy:

"A certain government or private investor builds a big road on which travelling is initially declared PAY-A-FIXED-FEE from onset. Then owner suddenly discovers that too many vehicles are on the road, and then decides to close EXIT. If you pay more money (maybe 10 times the original fee), you are allowed to complete your journey. And if you refuse to pay, then you can travel through the bush to your destination."

I hope the analogy is clear enough.

Traders should CAREFULLY read Agreements with their Brokers about handling of leverage...and "who" has the SOLE RIGHT to touch it. In my opinion, only Account Owner has such SOLE RIGHT, and not FX Broker, irrespective of any circumstances.
Reply
Hft.master
Jul 3, 2015 10:40am
Permalink
Quoting iumoren
I quite appreciate all your points.

You are mathematically-minded and am sure Forex MUST be "friendly" with you.

I would have elaborated on these points much earlier, but believe it makes no sense talking if you are not understood or heard. But, happily, there are people like you.

All the tricks of leverage reduction get at anywhere for traders. All benefits go to Brokers in case of any "collapse".

I must emphasize that "sudden leverage reduction" is equivalent to this analogy:

"A certain government or private investor builds a big...
Thanks mate! I do like your analogy, and hoping that the masses understand the game and play carefully as well!
A sudden leverage reduction must be also counteracted by a sudden fund withdrawals

as well so that all market makers get the main point, which is no price discovery can be achieved if you screw the masses in a such stupid fashion!

Cheers!
Reply
Hft.master
Jul 3, 2015 10:44am
Permalink
Quoting Guest
it only applies to new positions opened after 12.00 gmt today, here is the notification that arrived yesterday at 11pm gmt.



Further to our previous communications regarding the Greek debt crisis and upcoming referendum on Sunday July 5, we would like to advise you of the below:

Following a prudent approach, we have decided to increase margin requirements to 2% for trading the following instruments:

- Euro crosses

- G20 currency crosses

- Precious metals

In other words, the available leverage for trading the above instruments...
If I'm you, I would run a script and see the margin requirement for all instruments
so that you can figure out whether or not the old orders are affected or not!
I doubt that the used margin would be calculated using two different sets of margin requirement, unless there is an artificial credit added to compensate for the margin requirement increase!

I hope you clearly get may point!

Play safe!
Reply
iumoren
Jul 4, 2015 4:11am
Permalink
Quoting Guest
Does anyone have an idea what the GAP could be over the weekend?
There is no place for guessing in Forex.

If you trade manually, wait for Greece's Referendum result before placing trades.
Reply
Trader#CD6A
Jul 3, 2015 7:21am
Permalink
it only applies to new positions opened after 12.00 gmt today, here is the notification that arrived yesterday at 11pm gmt.



Further to our previous communications regarding the Greek debt crisis and upcoming referendum on Sunday July 5, we would like to advise you of the below:

Following a prudent approach, we have decided to increase margin requirements to 2% for trading the following instruments:

- Euro crosses

- G20 currency crosses

- Precious metals

In other words, the available leverage for trading the above instruments will be limited to 1:50. These new margin requirements will only apply to new positions that are placed between Friday, July 3, 2015, 12:00 to Monday, July 6, 2015, 02:00 (server time) unless otherwise advised.

Please do not hesitate to contact us if you have any further questions.
Kind Regards
FxPro Dealing Desk
www.FxPro.com
Reply
Trader#9B3F
Jul 3, 2015 11:03am
Permalink
Does anyone have an idea what the GAP could be over the weekend?
Reply

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