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Screenshot of a breaking news alert e-mail from Q2 2017
Swiss Forex broker Dukascopy today announces pending changes to trading conditions for USD/HKD (US dollar vs Hong Kong dollar).
Dukascopy Bank and Dukascopy Europe will be reducing maximum leverage for exposures on USD/HKD to 1:10, effective March 9, 2016 (11:00 GMT).
The move reflects the possibility of the abolishment of the USD/HKD peg and the probable subsequent high volatility and low liquidity on that currency pair. This is also associated with an increasing risk of significant price gaps, which may cause negative equity on client accounts.
Traders are asked to estimate their margin usage at the moment that the leverage reduction on USD/HKD will be applied and adjust their exposure if needed.
The company notes that on all accounts where there is no USD/HKD exposure, the lower maximum leverage will be applied today (March 3, 2016), after 14:00 GMT.
For the full announcement from Dukascopy, click here.