Rakuten Securities warns of margin changes due to tensions in Ukraine
Online trading company Rakuten Securities Hong Kong issued a warning notice to its clients regarding changes to trading conditions in light of the rising tensions in Ukraine.
Traders are advised to closely monitor their account status, and positions. The broker tells them to ensure they have enough margin in their accounts to avoid any unexpected forced liquidation.
Rakuten Securities warns of the following:
- Spreads may be widen and price distribution may be stopped;
- Slippage may occur. In some cases, stop orders may be negatively slipped due to extreme market conditions;
- Swap points may fluctuate significantly;
- Margin percentage may be increased temporarily.
Let’s recall that other Forex brokers have also reacted to the rising tensions in Ukraine. The Japanese subsidiary of electronic trading major IG has warned of possible changes to trading conditions for Russian ruble (RUB) pairs.
IG said it may have to increase margin rates for RUB instruments without notice depending on the market situation. Traders may also see wider spreads.
Another Forex broker that has adjusted trading conditions in response to the Ukrainian situation is Dukascopy. In the end of December 2021, the Swiss broker reduced the leverage for USD/RUB and EUR/RUB to 1:5 from 1:10. The maximum exposure limit of 1 million remained unchanged.