OANDA Japan raised the margin rate of AUD/JPY. The broker warns its clients about margin call risk.
OANDA Japan announced a change in the trading condition of AUD/JPY. The margin rate of the currency pair is raised to 3% from 2%. The change will be effective on May 15, 2023, to business accounts on the Tokyo and NY servers.
Therefore, the broker reminded the trader, who still holds a position in AUD/JPY, will have a margin call risk because of the change. OANDA recommended the traders reduce their position in advance or make sure that the funds are enough in the account. OANDA asked the clients to contact the broker for more information on the condition.
A margin rate refers to the cost of borrowing from a broker to buy or open one or more currencies. The margin rate that a brokerage charge is different from each other. In forex markets, a 1% margin is normal. It means that traders can control $100,000 of currency with $1,000. A raised margin rate means a trader must add some money as a deposit.
OANDA offers two pricing options: spread-only and core pricing plus commission. This means the customers can choose to pay the spread with the spread-only option or get lower spreads with commissions with the core pricing plus commission model.
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