Greece debt drama has prompted more forex brokers to apply precautionary measures. After Alpari, EXNESS, FXTM, FXCM, and Liteforex, now FirewoodFX and MFX also announced their respective decision.
Greece debt drama has prompted more forex brokers to apply precautionary measures. After Alpari, EXNESS, FXTM, FXCM, and Liteforex, now FirewoodFX and MFX also announced their respective decision.
Stay Away From EUR Pairs
In an email sent to clients this morning, FirewoodFX stated, Due to major news event that will occur this weekend, FirewoodFX will adjust the trading condition for all EUR pairs and other pairs that may related to EURO-Greece situation.
The adjustment will include increasing margin requirement, un-fixing the spreads, reducing the leverage of certain high risk account, or setting the trading to be close only. Therefore, we strongly recommend you to review your positions and ensure that you have enough margin to maintain them considering the possibility of increasing margin requirement that potentially lead to automatic stop out.
FirewoodFX will post the update regarding this adjustment in the company website. We strongly advise client to have no exposure on EUR pairs after NFP on July 2nd.
The adjustment may start at July 3rd, 12 hours before market close, until next Monday when the liquidity and normal trading condition are restored in the market.
Smaller Leverage
Meanwhile, MFX Broker decided to increase margin requirements with maximum leverage for all types of accounts will be set at 1:100 starting from Friday, July 3rd, 2015 at 18.00 (server time-zone) till Monday, July 2nd, after the opening of European markets. The broker that was previously known as MasterForex cited Greece crisis and high possibility of market leaps after referendum as the reason behind the changes.
Following on, FXPro that previously has warned its clients of possible Euro-related market turmoil now said that they may cut its leverage to 1:50 in Friday (last trading day before referendum in Sunday) or applying close only mode on EUR trading.
These policies show forex brokers' fervent desire to avoid another SNBomb calamity. As we all know, both the result of Greece referendum and market reaction toward it are highly uncertain. This completes the recipe for a bad black swan event if we are not prepared for it.