Dear Valued Client,
Prior to the Swiss National Bank's (SNB) decision on 15 January 2015 to abandon the EURCHF floor of 1.20, volatility in foreign exchange markets had already been increasing and subsequent heightened volatility in the global financial markets has only amplified persistent market risk. Looking forward there is significant probability that a period of sustained volatility should be expected in the FX markets. With the anticipation of the European Central Bank (ECB) to announce sovereign bond buying, concerns over Greek elections, and potential for global deflationary concerns prompting other central banks to aggressively act, the trading environment is bound to be challenging.
As a result, periods of high risk generally lead to reduced available liquidity. During these times, the ability to unwind highly leveraged positions at good price becomes difficult. In order to ensure best execution for our clients in all market conditions we are now reinforcing our maximum available leverage policy to 100:1. There are no changes to our initial margin rates, which you can view on our website except for the following products:
Instrument | Current Margin Rate | New Margin Rate | Forward Germany 30 | 4,570.63 EUR | 4% | Forward EU Stocks 50 | 591 EUR | 4% | Forward Switzerland 20 | 1,575 CHF | 4% | Forward Netherlands 25 | 950 EUR | 4% | Forward France 40 | 600 EUR | 4% | Forward Spain 35 | 2,500 EUR | 4% | Forward UK 100 | 850 GBP | 4% | Forward US Small Cap 2000 | 1,182.50 USD | 4% | Forward US 30 | 825 USD | 4% | Forward US Tech 100 | 770 USD | 4% | Forward US 500 | 1,127.50 USD | 4% | Forward Japan 225 | 90,750 JPY | 4% | Forward Australia 200 | 1,375 AUD | 4% | USDRUB | 2% | 4% |
The new margin rates above will come into effect on 21 January 2015 at 17:00 CET. The new leverage change will come into effect on 22 January at 10:00 CET. We appreciate your understanding and business relationship with Swissquote and have dedicated teams to assist you with any of your questions.
Sincerely,
Swissquote Bank Ltd |