Dukascopy Bank, which is regulated by the Swiss Financial Market Supervisory Authority FINMA both as a bank and a securities dealer has issued the following company statement regarding the status of EUR/CHF trading:
Recently EUR/CHF has triggered a lot of news noise and fears. Many clients and FX brokers around the world have suffered significant losses after the SNB decision to let go of the 1.2000 floor in EUR/CHF. This has forced many banks and brokers to increase their margin requirements for this currency pair. True to its vision of doing things differently, Dukascopy is going the opposite way by welcoming EUR/CHF “back to the family” by aligning its margin requirements with the other major currency. Without the artificial support at 1.2000, Dukascopy sees no reason to keep the specific trading limitations for EUR/CHF in force. As it was previously published, on 12.10.2014 Dukascopy had decreased leverage on EUR/CHF positions to 1:10, in order to protect clients from trading gaps related to the abolishment of the 1.2000 floor. With the measure in place Dukascopy group safely sailed through the dramatic raise of Swiss franc. Today this currency pair is once again allowed to float freely which is why Dukascopy responds: “EUR/CHF – welcome back to the family of majors!”
Dukascopy standard leverage is 1:100 with the possibility to increase leverage to 1:200 for Dukascopy Bank clients and 1:300 for Dukascopy Europe clients upon request. According to margin policy Dukascopy will execute margin cut trades only when use of leverage reaches 200%. In addition clients are free to choose between two margin cut modes: full closure of all open positions or partial hedge to use of leverage 100%. To get more information please visit Margin Requirements section of the website.
Dukascopy Bank and Dukascopy Europe implement new margin requirements for EURCHF as of 25 January 2015.
New margin requirements for EURCHF will enter into force as of January 25th, 2015 for Dukascopy Bank and Dukascopy Europe.
For the official release, click here.