Singapore lowers its leverage cap to 1:20

Discussion in 'Wall St. News' started by mlawson71, Oct 10, 2019.

  1. mlawson71

    mlawson71

    Singapore has lowered its leverage cap by more than half. This means forex traders in the country will now have access to leverage of 1:20, as opposed to 1:50 as it was before the changes.

    The decision was made by the Monetary Authority of Singapore, however, as with regulatory changes put forward by the European Securities and Markets Authority there are certain loopholes which allow for a more generous leverage under strict conditions.

    Аccredited investors in Singapore will have access to the original leverage, however, as in Europe, this would mean meeting strict capital requirements.

    Among the requirements is a personal net worth of more than 2 million Singaporean dollars ($1.5 million) or proof of an annual income of more than 300,000 Singaporean dollars. Traders with more than 1 million Singaporean dollars in cash may also qualify for the higher leverage.
     
    murray t turtle likes this.
  2. is leverage not decided by broker?
     
  3. tiddlywinks

    tiddlywinks

    Singapore is pegged to USD.

    The peg is stressing.
     
  4. TRS

    TRS

    No. The Countries Governing financial body decides. The US enforced restrictions to leverage in 2010. The Europeans reduced leverage earlier this year. Singapore today and Australia will in the coming weeks.
     
    murray t turtle likes this.
  5. luisHK

    luisHK

    Not quite :

    "From 1985 onwards, Singapore adopted a more market-oriented exchange regime, classified as a Monitoring Band, in which the Singapore dollar is allowed to float (within an undisclosed bandwidth of a central parity) but closely monitored by theMonetary Authority of Singapore(MAS) against a concealed basket of currencies of Singapore's major trading partners and competitors. This, in theory, allows the Singaporean government to have more control over imported inflation and to ensure that Singapore's exports remain competitive."

    https://en.wikipedia.org/wiki/Singapore_dollar
     
    murray t turtle and GregorySG9 like this.
  6. mlawson71

    mlawson71

    Singapore also apparently saw an increase in online financial scams recently.
     
  7. Prevention for online scam in Sg:
    [​IMG]