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Abstract:FOREX.com Japan has announced an increase in margin rates for HKD currency pairs, effective from March 9, 2023. The new margin rates will apply to FOREX.com accounts and MT4 accounts, and traders will be required to maintain a higher margin to open and maintain positions in these currency pairs.

FOREX.com Japan, a retail Forex and CFD broker has announced a change in the margin rates for HKD currency pairs, effective from March 9, 2023. The new margin rates will apply to accounts held with FOREX.com as well as MT4 accounts. The affected currency pairs are USD/HKD, EUR/HKD, GBP/HKD, SGD/HKD, and HKD/JPY.
The current required margin rate for these currency pairs is 15.00% with a leverage of 6.67 times. However, the new required margin rate will be 20.00%, resulting in leverage of 5.00 times. This means that traders will now be required to have more margin in their accounts to open and maintain positions in these currency pairs.
Moreover, if the trade size exceeds a certain amount, traders will have to pay a higher margin rate on the excess amount. For instance, a trade size of $10,000,000 or above will require a margin rate of 30.00%, which is a leverage of 3.33 times. Similarly, a trade size of $20,000,000 or above will require a margin rate of 40.00%, which is a leverage of 2.50 times.

Therefore, traders need to be mindful of the trade size they choose and the margin required to maintain it.
The announcement advises customers who currently hold positions in the above-mentioned currency pairs to manage their positions and funds carefully. Traders are requested to ensure that they have sufficient funds in their accounts to meet the new margin requirements. This is because failing to maintain the required margin may result in the forced liquidation of positions, which could lead to substantial losses for traders.
The change in margin rates for HKD currency pairs by FOREX.com Japan is not uncommon in the Forex market. Margin rates are used to control the amount of leverage offered to traders, which helps in mitigating the risk of losses for traders as well as brokers. Typically, brokers adjust margin rates based on market volatility, currency liquidity, and other factors.
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Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

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