Forex companies are closely watching the latest developments concerning Greece’s economy and the status of the country in the eurozone. As the risks associated with the single currency are not abating, European retail Forex broker FxPro has published another update on the situation, warning its clients it may cut leverage this Friday.
The missing of a loan repayment to the IMF on Tuesday, along with the scheduled referendum on Sunday, ATM runs, capital controls and a troubled banking system, is leading the broker to believe that Monday’s EUR gap “may have just been the prelude to a much more volatile period for the euro”.
The broker warns that to prevent extreme events, it is ready to implement changes in trading conditions.
This could include setting EUR trading to “Close only” mode or reducing available leverage to 1:50 before market close this Friday (July 3, 2015). A leverage of 1:50 translates into a required margin for trading EUR pairs of 2%. The potential change will apply to new and pre-existing positions.
The newest announcement on EUR risks by FxPro comes after several previous warnings by the broker regarding trading the single currency. FxPro’s corporate blog has been keeping the broker’s clients up-to-date with the latest developments regarding the Greek situation.
To view FxPro’s latest update on EUR trading risks, click here.