OANDA Japan to change margin rates for CHF pairs

The broker will tighten the margin requirements for eight CHF pairs.

Online trading services provider OANDA Japan today announces that the margin requirements for eight Swiss franc pairs will be changed, effective May 25, 2020.

The planned changes are the following:

• CHF / JPY: 4% (previously 2%);
• USD / CHF: 4% (previously 2%);
• EUR / CHF: 4% (previously 2%);
• GBP / CHF: 4% (previously 3%);
• AUD / CHF: 4% (previously 3%);
• CAD / CHF: 4% (previously 2%);
• NZD / CHF: 4% (previously 3%);
• SGD / CHF: 4% (previously 2%).

If a customer who holds a position in the relevant currency pair continues to hold it after the market closes on May 22, 2020, losses may occur due to a change in the margin rate. The broker recommends that traders reduce the size of their position in advance, or make sure that they have sufficient funds in their accounts.

OANDA Japan has been changing margin rates on a number of pairs amid the recent spike in market volatility. In April, for instance, it tightened the margin requirements for AUD/SGD, AUD/CAD, and CAD/JPY. In March, the broker amended the margin requirements for nine FX pairs available for trading via the Tokyo and NY servers. The required margin for AUD/CHF, AUD/JPY, AUD/USD, EUR/AUD, EUR/NOK, NZD/CHF, NZD/JPY, NZD/USD, and USD/NOK, was increased effective March 30, 2020.

The increased volatility has exposed a set of trading issues. In mid-March, OANDA Japan warned about the performance of MetaTrader 4 (MT4) during amid heightened market volatility.