MTBankFX, the forex broker arm of Belarus-based lender MTBank, said on Thursday it will changed from 16 September, 2016, the maximum leverage for weekend trading to 60:1. This means that margin rate will be increased to a minimum 1.66% for trading during weekends.
Traders with open positions at the time the changes take effect will receive a margin call if they do not have sufficient funds to cover the new requirements.
Leverage is a type of virtual borrowing traders can take from their broker. It allows investors to operate with higher amounts and to increase their profit, since they provide them with higher buying power, but it also presents higher risk. Margin rates indicate the minimum amount of own funds clients need to have in their accounts when using leverage.
MTBankFX commenced operations in mid-July this year. With its launch, MTBank became the first bank to offer forex trading services in Belarus. The broker uses the electronic communication network (ECN) technology of Swiss forex bank and broker Dukascopy Bank.