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Did your broker change margin requirements before Brexit?


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Hey guys,

 

I wanted to play big on Brexit event, but seems to degree of risk was too high that my broker (hotforex) lowered leverage to protect clients from excessive losses because of possible volatility and abnormal market behavior. Did your broker make same adjustments in their risk profile?

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Yes, they changed the margin requirements for the sake of controlling the risk and i agree with it so i decide not to trade during that week and now i'm back with few tradings and few profits. Many experts i met online said that broker change the margin requirements so the SNB's tragedy doesn't make it back and destroy the broker and someone who lose.

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Yes, but I have seen so many brokers not doing it, I believe it’s not good for their clients as eventually they chase them for recovery of negative balance and it could be very harsh on traders who don’t understand these things well. I saw one trader lose 10k on Brexit while his investment was just 6k, so now Nova FX broker is after him to give the recovery which is very sad.

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That is pretty bad and also based on some people i've talked through chat they said be careful with that kind of broker usually they have their own internal market or it is what people called as dealing desk broker, they don't follow the liquidity provider and usually against their trader, because even big brokers also lowering their own margin for the sake of protection.

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Yes most broker change margin requirement before brexit, but now already get announcement if broker already back to normal condition after brexit, and brexit impact very high to currency gbp and euro and some another commodity like as gold and silver.

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  • 3 weeks later...

Of course, they changed it. It lowers even half of it and the worst thing that if you don't know they do that then that is your fault. Practically the broker which services I've been used for a few years back do that for the sake of stability and to avoid bankruptcy, also i think this is as logical way for them to reduce the risk later.

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Not just your instaforex, roboforex , and others do that but also the other brokers It is forex the sake of their stability and continuity if your broker cannot do that the same thing may happened to them just like what happened with many brokers related to the Swiss Franc issue months ago. However, we should note this is for the broker's and our interest too.

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Not just your instaforex, roboforex , and others do that but also the other brokers It is forex the sake of their stability and continuity if your broker cannot do that the same thing may happened to them just like what happened with many brokers related to the Swiss Franc issue months ago. However, we should note this is for the broker's and our interest too.

Hello side Job. Its true ist not only those  brokers that changed their margins, other brokers including the following their margins shifting.

 

1. Trade12

2. ATS Markets

3. Titan FX

4. Lite Forex

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As long as they want to reduce the risk i think they should do that, in fact this could help the broker and also people who trade inside of it which make it the most feasible scenario that could happen sooner or later. Save the broker is the best for all, including to the clients(retail to big traders), employees, the owners of that broker and other stakeholders.

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  • 2 weeks later...

Hey guys,

 

I wanted to play big on Brexit event, but seems to degree of risk was too high that my broker (hotforex) lowered leverage to protect clients from excessive losses because of possible volatility and abnormal market behavior. Did your broker make same adjustments in their risk profile?

 

Yes, many brokers adjusted the leverage to ensure the liquidity and prevent errors from trading for their clients (traders). 

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On brexit momentum, might many trader loss but also some trader might getting huge profit, before brexit vote finished trend move on bullish but after finished then suddenly many pair move to bearish very strong, gbpjpy, eurusd has wider movement on brexit which more than 1700 pips only few hours

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That is the measurement against loss, i don't see anything wrong with it. As long as our trustable broker still survive i think we also able to survive later, and reflecting from CHF tragedy(well i'm a bit over with this tragedy words), many brokers must sold their subsidiary to the others to paid the broker who lose, and i think this method much effective for long term.

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