Swiss-based Forex broker Dukascopy has announced that leverage on all currency pairs volition endure reduced on U.S. Election day, citing odd volatility together with unpredictable marketplace liquidity. In particular, Dukascopy volition endure reducing leverage on the USD/MXN yoke to 1:10, 2 days prior to the election, on Nov 6, spell all other FX pairs volition accept leverage ratios trimmed on Tuesday, Nov viii at 10:00 GMT.
Dukascopy has
clarified that alone accounts alongside balances inwards excess of $30,000 USD volition endure dependent plain to the leverage reductions:
“All other accounts (under USD 30,000 or equivalent) that sense a pregnant increase of equity due to lucre or deposit on Tuesday viii Nov volition endure treated on a case-by-case basis.”
For most of the measure FX pairs, leverage during the election volition endure reduced to measure weekend levels (1:30), alongside some exotic pairs similar CAD/HKD, EUR/TRY together with HKD/JPY having weekend leverage of 1:10. Weekday leverage ratios for most currency pairs on Dukascopy are commonly around 1:100.
Trading atmospheric condition volition endure returned to normal on Nov 9, however, Dukascopy has said that tight leverage ratios may stay suppressed if marketplace atmospheric condition warrant it.
Similar policies were implemented ahead of the
Brexit vote inwards June, where maximum leverage ratios for GBP together with EUR pairs were reduced to 1:30. In the example of Brexit, Dukascopy maintained the restrictions for half dozen days.