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Retail Forex broker EXNESS is planning to reduce leverage, in an effort to minimize risks of losses for its clients as the Greek situation is getting more complicated.
The company says that due to the uncertain economic situation of Greece, it will set leverage at 1:100, thus hiking margin to 1%. The change comes into effect at 17:00 GMT/UTC on July 3, 2015, (that is, five (5) hours before the market closes) and will apply to both new and already-open transactions in all currency pairs.
EXNESS explains that the measure is aimed at reducing trading risks in case of high volatility at market opening.
Within 3 hours after market opening (that is, by 00:00 GMT/UTC on Monday – July 6, 2015) the margin requirements will be readjusted in accordance with the leverage previously used by clients and the current balance of funds in the account.
The decision by EXNESS to introduce these temporary changes in trading conditions comes after other Forex brokers, like FXCM and FXPro have also taken analogical steps to reduce possible risks stemming from a potential spike in volatility amid the Greek crisis.
To view the official announcement by EXNESS on the trading conditions changes, click here.