In a note to its clients today MaxFX announced it will restore normal trading in TRY pairs as of Monday, July 25. However, all existing and new positions will be subject to increase of margin rates to 5% (from 0.2%).
Like a number of other FX brokers, MaxFX changed its trading conditions temporarily, switching all TRY pairs to “Close Only” mode on Monday, July 18, As a result of the attempted coup in Turkey and the crash of the Turkish Lira (TRY) that followed.
Following the failed military coup in Istanbul, and the three-month state of emergency declared by president Erdoğan (that will in fact allow him to rule without parliament), the Turkish lira fell to a fresh historic low of 3.0970 against the dollar early on Thursday. Market volatility is still in the air and that is why some brokers apply preventive measures, such as lowering leverage levels.
MaxFX is in fact following the example of leading EU broker FxPro, which announced on Thursday it is restoring normal trading in TRY pairs with increased margin requirements.
MaxFX is the trading name of TopFX Ltd., registered as a Cyprus Investment Firm (CIF) and regulated by CySEC. It offers trading in various assets, including over 60 currency pairs, precious metals and commodities through the MetaTrader 4 and cTrader platforms. MaxFX provides a single STP trading account with leverage up to 1:500.