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Screenshot of a breaking news alert e-mail from Q2 2017
Switzerland-based retail Forex broker Dukascopy has announced it will introduce a specific leverage of 1:30 on all currency pairs with the euro (EUR) over the coming weekend.
The new margin requirements become effective today (February 20, 2015) at 18:00 GMT, with the specific leverage to be removed after market opening on Sunday night. The broker stresses that the change will affect all trading accounts with Dukascopy Bank and Dukascopy Europe, including the accounts of clients whose weekend leverage is usually higher than 1:30.
Dukascopy also warns traders of high risks of slippage, widening of spreads and order rejects after the market opening. Clients are advised to axe their exposure in EUR pairs.
In its announcement, the broker explains that the measures result from warnings issued by several of the company’s liquidity providers that caution of “excessive risk of market gaps on Euro-related currency pairs related to Greece and its possible exit from Euro Zone”. There is a chance of Forex markets opening on Monday morning at a markedly different level from the Friday night close.
A set of meetings of the Euro-area partners will be held today, with Greece attempting to secure an extension to its rescue programme. Yesterday’s news have been dismal in this respect, with a German official signaling Berlin will not support Athens’ request. The news triggered a slide in the euro against the US dollar on Thursday, with the decline continuing today.
The official announcement by Dukascopy on leverage changes can be read here.