OANDA Japan Cuts Silver Leverage to 5:1, Raises Margins Amid Market Volatility

OANDA Japan has introduced tighter trading restrictions on silver as volatility intensifies in precious metals markets.

The broker said it will raise margin requirements on silver (XAG/USD) from 5% to 20% starting February 2. Maximum leverage will effectively fall from 20:1 to 5:1. Order size limits have been reduced from 50,000 units (10 lots) to 25,000 units (5 lots), while maximum open positions have been cut from 100,000 units to 25,000 units.

The higher margin requirement will apply to both existing and new positions. OANDA Japan warned that clients with open silver trades may face forced liquidation if they do not add funds or reduce exposure before the changes take effect.

The broker cited “extremely low liquidity” and “high volatility” in precious metals markets as the main reasons for the move. It also said spreads have widened and counterparty transaction costs have increased.

OANDA Japan noted it may further adjust margin rates and funding costs for both silver and gold (XAU/USD) without prior notice if market conditions deteriorate. Trading in silver CFDs could also be temporarily suspended, the firm said.

The restrictions come as price swings in gold and silver accelerate. Gold recently traded near $5,600 per ounce, up roughly 30% since the start of 2026. Silver has climbed nearly 70% this year after a sharp rally in 2025, according to market data cited by industry participants.

Other market infrastructure providers have also responded to volatility. The Chicago Mercantile Exchange moved to percentage-based margin calculations earlier this month as gold and silver prices surged. Liquidity provider Scope Prime has also adjusted spreads following the CME’s changes.

In the retail brokerage sector, firms have reported increased client activity in precious metals. Axi said trading volumes in gold contracts have more than doubled during the recent rally.

Some industry executives have questioned the sustainability of current price levels. Scope Markets EU CEO Constantinos Shakallis compared the rally to past speculative cycles, citing previous market booms in technology stocks, housing, and cryptocurrencies.