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Alpari has today announced a reduction in the maximum leverage on pairs with the Russian Ruble, with the move being specific to USD/RUB and EUR/RUB pairs.
The change, which comes into effect tomorrow, December 16th, will apply to all new and existing positions with the aforementioned instruments. The cut in leverage applies to all sorts of accounts, including Standard, Pro, ECN and PAMM.
The changes are as follows:
1. For positions with notional volume from 0 to $1.5 million, the leverage on RUB pairs is axed from 1:100 to 1:50. This translates into the margin rising from 1% to 2%.
2. For positions with notional volume from $1.5 million to $3 million, the leverage is axed from 1:50 to 1:25. The margin rises from the previous level of 2% to a new level of 4%.
3. For positions with notional volume of more than $3 million, the leverage is axed from 1:25 to 1:10. The subsequent change in margin is from 4% to 10%.
The change in margin requirements comes after a set of problems that have marred trading RUB pairs with Alpari over the past weeks. Difficulties with liquidity providers have led to concerns by Alpari over quotes, resulting in temporary suspensions of trading with the EUR/RUB and USD/RUB. Trading has long since been restored but the trading session is shorter, whereas the broker periodically conducts searches for alternative quote providers for the RUB pairs.
Meanwhile, Russia’s national currency keeps feeling the pressure of falling oil prices and geopolitical tensions. The interventions by the Bank of Russia, along with statements by Russia’s top politicians and economists seem to have little effect on the Ruble slide.
One more factor that may have a role in Alpari’s decision is that the leverage on RUB pairs will soon be restricted to 1:50, the maximum allowed level according to the FX bill that awaits its third reading at Russia’s parliament tomorrow. It is likely that leverage cuts are just starting at Alpari, with more pairs poised to be affected in the future.
The official announcement by Alpari on the margin change can be found here.