Ahead of Brexit referendum in the UK, leading forex broker AxiTrader also announced changes to its trading conditions: it temporarily cuts leverage on GBP pairs and other instruments, enlisted below, to 1:20. Leverage levels for all other products changes from 1:400 to 1:100. The amendments announced previous week enter into force today, from market open.
Here is a list of the products, to which applies a maximum leverage of 1:20 (i.e. margin requirement increased to 5%).
AxiTrader also warns its clients that additional margin may require them to add funds to their accounts, or to reduce positions. If a client does not meet the higher margin obligations, his or her positions will be automatically closed out if the margin in their account is less than 50% of the minimum required level.
The broker also clarifies that these changes will only be temporary and as long as the fuss around the UK referendum fades away, AxiTrader expects to restore its trading conditions.
In fact, most forex brokers announced limiting leverage levels over Brexit vote as a preventive measure against high market volatility. Besides, many of them also make other amendments to their trading conditions, such as increasing stop out levels or restricting net open positions on GBP crosses.
The list of FX brokers who recently hiked margin requirements of GBP pairs is long, including well-known brands like Forex.com, FxPro, RoboForex, HotForex, FxOpen, Orbex, FXCM, Oanda, IG Group, ActivTrades and many others.
AxiTrader posted the following note on its website:
Events which drive significant market volatility such as the June 23rd ‘Brexit’ Referendum can provide traders with increased opportunity, but also increased risk. In order to protect our clients from such significant market movements, our Risk Department will be taking a prudent course of action and temporarily making changes to the maximum leverage available and stop out levels for all positions.
Since being founded in 2007 in Australia, AxiCorp has grown into a truly global business with offices in Australia’s Sydney, UK’s London, Moldova’s Chisinau, UAE’s Dubai, and Saudi Arabia’s Riyadh and Jeddah. It serves both retail and institutional clients in more than 150 countries, offering trading in more than 80 instruments including forex and CFDs on bullion, metals, commodities, oil, and indices.