The UK referendum is over now, but it seems market volatility is here to stay. That is some why forex brokers, who have hiked their margin requirements before UK vote, are currently extending the measures applied. Hantec Markets announced today to further limit leverage levels to 1:10 for all trading accounts.
Like most FX brokers, the FCA-regulated Hantec Markets also limited its leverage levels to 1:25 ahead of Brexit, aiming to protect its clients, as increased market volatility was expected. In a note to its clients today, the broker said that market volatility and turbulence substantially increased after the Brexit outcome and as various news and negotiations with potential impact on financial markets are yet expected, it cuts leverage levels to 1:10 on all currency pairs, spot CFD, spot Oil and spot Bullion positions, as of 15:00 London time on Friday. In addition, there will be changes to trading conditions of certain indices and other instruments with fixed margins.
Another broker that announced today extension of higher margin requirements due to Brexit, is Geneva-based Dukascopy.
Hantec Markets is a No Dealing Desk (NDD) broker providing online trading services in currency pairs, CFD, precious metals and bullion through two of the most popular trading platforms, MetaTrader 4 and Currenax. Hantec Markets Limited, operating under the brand Hantec Markets, is the UK-based unit of the Hantec Group. The group also has an Australian subsidiary, which is licensed by ASIC and operates under the tradename Hantec Markets Australia (HMA). The mother company Hantec Pacific Ltd. is a multinational finance house based in Hong Kong.