Forex Broker Cutting Leverage before French election | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

High leverage vs Low leverage 74 replies

Reliable Broker with nano lot, micro lot broker, leverage 1:400, 1:500 35 replies

High Leverage vs Low Leverage 21 replies

High Leverage vs Low Leverage 20 replies

Forex broker with 1:400 leverage. U.S. Client 4 replies

Attachments: Forex Broker Cutting Leverage before French election
Exit Attachments

Forex Broker Cutting Leverage before French election

  • #1
  • First Post: May 1, 2017 2:19pm May 1, 2017 2:19pm
my broker sent me a email telling me my leverage will be cut to 50:1 until after the french election , any one else broker cutting leverage?
  • #2
  • May 2, 2017 12:47am May 2, 2017 12:47am
Yes. From Friday until Monday at 12 (2 hours after London opens) at my broker.
50:1.
  • #3
  • Edited 5:53am May 2, 2017 4:28am | Edited 5:53am
Quoting PoundTrader
my broker sent me a email telling me my leverage will be cut to 50:1 until after the french election , any one else broker cutting leverage?
vantagefx increase margin by 5x for GBP,EUR,JPY pairs and indices all in the name of "client protection"

Logically speaking, these are tell tale signs of market makers claiming to be ecns.

but on the other hand, as long as they are able to make payouts to clients. Its all good.
  • #4
  • May 2, 2017 12:11pm May 2, 2017 12:11pm
Quoting Bicarus
{quote} vantagefx increase margin by 5x for GBP,EUR,JPY pairs and indices all in the name of "client protection" Logically speaking, these are tell tale signs of market makers claiming to be ecns. but on the other hand, as long as they are able to make payouts to clients. Its all good.
these might be signs brokers are ECN, they don't wanna cover your losses if your account in the negative like fxcm had to do
  • #5
  • May 2, 2017 2:12pm May 2, 2017 2:12pm
Quoting Bicarus
{quote}Logically speaking, these are tell tale signs of market makers
Hu? Forexfactory nonsense as usual ... Whether your broker is "ECN" or not, he is still the counter party of someone and you are his - the execution/order matching style doesn't change that fact. The broker is protecting his and as a consequence the arses of all other customers because you (as in the average trader) will not be able to pay your debt in time (or at all).

The opposite of what you claim is true: a broker who doesn't try to protect itself against debt it incurred due to reckless trades by his customers is likely to not be an ECN or a STP venue.
  • #6
  • May 2, 2017 2:56pm May 2, 2017 2:56pm
Quoting PoundTrader
my broker sent me a email telling me my leverage will be cut to 50:1 until after the french election , any one else broker cutting leverage?
Dukascopy , Swiss :

" 1 May 2017
French election: Weekend leverage extension
On Sunday 7 May, the French are heading to the polls again for round two of the Presidential election between the final two candidates Mrs Marine Le Pen and Mr Emmanuel Macron.
Due to possible volatility that the outcome may cause to financial markets, Dukascopy will extend the weekend margin policy by a few hours into the session starting Sunday 7 May 21GMT. There is no fixed time schedule when normal margin policy is restored; it will be done without additional announcement after the election results are known and once trading activity can be considered to be normal.
Furthermore we like to draw our clients attention to the fact that large price gaps may occur between the market closure on Friday 5 May at 21:00 GMT and market opening on Sunday 7 May. Holding any position over the weekend may lead to substantial losses even if leverage use is reduced. "
  • #7
  • May 2, 2017 4:41pm May 2, 2017 4:41pm
Quoting redoktober
{quote} Dukascopy , Swiss : " 1 May 2017 French election: Weekend leverage extension On Sunday 7 May, the French are heading to the polls again for round two of the Presidential election between the final two candidates Mrs Marine Le Pen and Mr Emmanuel Macron. Due to possible volatility that the outcome may cause to financial markets, Dukascopy will extend the weekend margin policy by a few hours into the session starting Sunday 7 May 21GMT. There is no fixed time schedule when normal margin policy is restored; it will be done without additional...
im looking to be out all trades before friday close
  • #8
  • Edited 9:56pm May 2, 2017 9:26pm | Edited 9:56pm
Quoting JensG
{quote} Hu? Forexfactory nonsense as usual ... Whether your broker is "ECN" or not, he is still the counter party of someone and you are his - the execution/order matching style doesn't change that fact. The broker is protecting his and as a consequence the arses of all other customers because you (as in the average trader) will not be able to pay your debt in time (or at all). The opposite of what you claim is true: a broker who doesn't try to protect itself against debt it incurred due to reckless trades by his customers is likely to not be an...
this is only true if you are trading on leveraged margin. i dont see why any form of account adjustments should be implemented on clients that are not using any. because there is no additional risk on the broker if they are truely stp.

even pepperstone and dukascopy extended the courtesy of not increasing my margin req when i contacted the acc manager.
  • #9
  • May 2, 2017 9:27pm May 2, 2017 9:27pm
Quoting PoundTrader
{quote}these might be signs brokers are ECN, they don't wanna cover your losses if your account in the negative like fxcm had to do
i dont know how to double quote in same reply, so kindly refer to my above reply to JensG
  • #10
  • May 3, 2017 4:40am May 3, 2017 4:40am
Quoting Bicarus
{quote} this is only true if you are trading on leveraged margin. i dont see why any form of account adjustments should be implemented on clients that are not using any. because there is no additional risk on the broker if they are truely stp.
Again hu? If you are not trading on margin then a margin increase won't affect you - no rocket science really ... With 1:1 there is no risk, of course not. Neither side can reach 0 (or negative territory).
  • #11
  • May 3, 2017 5:04am May 3, 2017 5:04am
Quoting JensG
{quote} Again hu? If you are not trading on margin then a margin increase won't affect you - no rocket science really ... With 1:1 there is no risk, of course not. Neither side can reach 0 (or negative territory).
there is a difference between leverage change and margin change. even with 1:1 lev. there is still a margin being applied.
i think there is a mis comm here. the margin which im talking about is call.
eg; for 100k balance, @ 1:1 lev. max opened lot is 1. margin is eg 10000, ($100000/$10). call is usually @80, but now, call is @400.

current
Attached Image


show u the diff once it comes into effect
  • #12
  • May 5, 2017 10:37am May 5, 2017 10:37am
my advice hidge your acount whatever its the Time untill this is all over, or close all postions, My advice just saying! good luck ALL MATES
Let me fill my acount wallet then will take Ur advice
  • #13
  • May 7, 2017 12:36pm May 7, 2017 12:36pm
Quoting PoundTrader
my broker sent me a email telling me my leverage will be cut to 50:1 until after the french election , any one else broker cutting leverage?
my leverage is 50:1 as arule . all year long. how bout that
The risk is what gives value to an investment.
  • #14
  • Last Post: May 8, 2017 10:51am May 8, 2017 10:51am
Quoting 3cent
{quote} my leverage is 50:1 as arule . all year long. how bout that
that's why i went offshore
0 traders viewing now