Japanese Forex broker FOREX.com today issued a warning regarding the Turkish lira (TRY).
The broker notes that the Turkish lira is volatile due to political and economic events. In some cases, liquidity may plummet and additional measures may be taken by FOREX.com or the Turkish government authorities. These measures comprise restrictions on transactions, including suspension of transactions. Raising the required margin is also possible, as well as the widening of spreads.
Traders are advised to be careful when trading EUR / TRY, USD / TRY and TRY / JPY.
FOREX.com also notes that if the market price changes suddenly, there is a risk of loss more than the funds deposited by the customers with the broker.
Let’s note that FOREX.com, including its Japanese operations, is now owned by StoneX. On July 31, 2020, StoneX completed the acquisition of GAIN Capital, an online provider of retail foreign exchange trading and related services, as well as the former owner of brands such as FOREX.com and City Index.
Other brokers have also taken precautions regarding the volatile TRY. FxPro, for instance, has set trading in Turkish Lira pairs (USD/TRY and EUR/TRY) to close-only, meaning that clients of FxPro are unable to open new positions for the time being.