As a result of the apparent attempted coup in Turkey, volatility across the markets increased yet again after Brexit, urging forex brokers to take precautionary measures. Leading forex broker FxPro announces to reinstate trading in Turkish lira (TRY) next week with 5% margin requirement.
In fact, FxPro was among the first to react, setting USDTRY and EURTRY pairs to “Close Only” mode on its MetaTrader platforms and disabling TRY crosses on cTrader on Monday, July 18. We remind you that earlier in June, FxPro hiked its margin requirements over Brexit for GBP and EUR pairs, as well as for European index and share instruments in order to protect its clients against high market volatility.
Lesson learned, now the broker does the same to Turkish lira instruments, in order to mitigate the harmful effects of the failed military coup in Turkey on the lira. Following this event, which caused president Erdoğan to declare three-month state of emergency (that will actually enable him to rule without parliament), the Turkish lira fell to a fresh historic low of 3.0970 against the dollar early on Thursday.
As thing are not getting better with the Turkish currency, FxPro announced to temporarily hike its margin requirements to 5% for all existing and new positions with TRY pairs as of Monday, July 25. This means that the maximum leverage for such positions will be 1:20 and typically this broker provides leverage up to 1:500.
FxPro is a leading online brokerage, regulated by Cyprus’ Securities and Exchange Commission (CySEC) and UK’s Financial Conduct Authority (FCA). It offers complete services for all segments of the retail forex market, as well as trading in futures, indices, metals, shares, and CFDs on a number of trading platforms.