Forex.com hikes EUR pair margins ahead of German elections

Discussion in 'Forex Brokers' started by mlawson71, Sep 16, 2017.

  1. Forex.com, one of the retail forex brokerages of Gain Capital, announced it is temporarily increasing the margin requirements on the EUR forex pairs in order to protect its clients from potential market volatility around the upcoming general elections in Germany.

    Even though the outcome of the elections appears predetermined with a stable lead of the ruling coalition of Angela Merkel, a surprise is never impossible and it could affect the markets and the Euro rate significantly.

    Do you think other brokers will follow suit and raise the EUR pair margins before the elections?
     
  2. jhehe

    jhehe

    I think it's an appropriate move overall. It would suck if brokers placed too much trust in their "liquidity" provided that they actually send a net order out to the market. If anyone were to take an appropriate euro trade, it'll protect themselves a bit more in terms of hitting preventing a negative balance if MC-ed. Sometimes, you just gotta ignore the complaints of those retail guys whining about brokers raising up margins and "preventing them from trading", blah blah bs.
     
  3. The German elections were expected to cause a lot of volatility on the market so various brokers introduced measured that made it difficult to trade the pairs that were supposed to be affected by the results of the elections. That way their clients would trade them less and the possibility to lose money was smaller.