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Screenshot of a breaking news alert e-mail from Q2 2017
Retail Forex broker EXNESS, which keeps setting trading volume records, is obviously trying to please its clients by offering them enhanced trading terms and conditions.
The latest improvement in this respect came into force on June 4, 2015, and concerns margin requirements for pairs with the Swiss franc (CHF).
The margin requirements for positions with CHF pairs (excluding crosses like CHF/TRY or CHF/ZAR) are now back to normal, that is, to levels set before “Black Thursday” events. This effectively means that maximum leverage for CHF pairs will be 1:2000 on Mini, Cent and Classic accounts, which translates into a margin of 0.05%. On ECN accounts the maximum leverage will be 1:200.
One more peculiarity to consider is that for the five hours before forex market closing, margin requirements are calculated based on the maximum leverage of 1:200. This rule has been in place in order to reduce the potential losses in case of a price gap at market opening.
Details about how EXNESS determines leverage can be see in the table below:
EXNESS was amid the first FX brokers to forgive their clients their negative balances and to reinstate trading with CHF pairs after the turmoil following the snap decision by the Swiss National Bank to abandon the peg of the EUR to the CHF. Back then, however, margin requirements were still stringent. It is good to see that the picture has now gotten back to normal.
You can read the official announcement on the new trading conditions by clicking here.