Japanese forex broker Gaitame plans to reduce leverage rate of over-the-counter (OTC) forex trading to 1:100 from 1:200, online finance media Finance Magnates reported on Thursday.
The new leverage will come into effect as of 8 April, 2016, the media said, adding that the changes will be revised.
The motives of the Japanese broker for the cutting of the leverage rate has not been specified. According to the media, the move might be related to the broker’s declining trading volumes. In November, Gaitame’s trading cilume dropped by 25% to JPY 18 trillion, while its trading accounts grew to 405,109.
Source: Finance Magnates