Shortly after issuing a warning notice about trading conditions for Turkish lira (TRY) currency pairs, FOREX.com Japan has confirmed that it will amend the margin requirements for these trading instruments.
The change reflects the increased volatility of the Turkish lira (TRY). After the closing of trading on Thursday, December 30 (7:00 am on Friday, 31st Japan time), the margin requirements for USD/TRY, TRY/JPY and EUR/TRY will increase twofold.
For holders of MT4 accounts, this means that the margin requirement for trades in the above-mentioned TRY pairs will change from the current level of 10% to 20%.
For holders of FOREX.com account, if the notional amount is USD 100,000 or less, the requirement is 10% as it is. However, if the notional amount exceeds USD 100,000, a margin requirement of 20% will be applied to the portion that is less than USD 200,000. Also, if you exceed $200,000, a margin requirement of 30% will apply for the portion less than $300,000. Accordingly, the required margin rate will increase by 10% for every US$ 100,000.
The broker advises its clients to consider adding margin or reducing their position so that they have enough funds in their accounts.
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.