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Screenshot of a breaking news alert e-mail from Q2 2017
Australian retail Forex broker ThinkForex is slashing leverage on some instruments this weekend, as concerns continue to pile up over Greece’s future.
This Sunday – July 12th, has been set as another deadline for Greece to arrange a new bailout scheme with its creditors. Depending on the result of the bailout talks, there could be significant volatility and a market gap, especially on Monday’s open. ThinkForex warns that liquidity may be significantly lower, whereas volatility is likely to surge.
In order to protect clients against drastic moves, the company has decided to temporarily reduce leverage on some instruments.
- Leverage for trades with all EUR and JPY pairs will be capped at 50:1.
- Leverage for GBP/USD and AUD/USD will also be changed to a maximum of 50:1.
The changes will be implemented from 12:00 New York time (19:00 GMT+3) on Friday – July 10, 2015, and will remain in place until after the market opens on Monday. It is worth noting that the margin changes will apply to new and existing positions.
ThinkForex also says that if there is a market gap, stop and limit orders may experience slippage that is larger than normal.
To view the official announcement by ThinkForex, click here.