FXCM Inc to Increase Margin Requirements in Two Steps to 2%

According to information obtained exclusively by FortuneZ’ reporters, FXCM Inc (NYSE:FXCM) will increase margin requirements for its clients in two steps starting later tonight. The first step higher will be a doubling of margin levels for foreign exchange traders using 0.25% (1:400), 0.5% (1:200) and 1% (1:100).

This action will effectively bring margin requirements levels of those same clients to 0.5% (1:200), 1% (1:100) and 2% (1:50) respectively.

The second step of the move by FXCM Inc (NYSE:FXCM) will be undertaken on Friday with the margin requirements on all accounts being brought to 2%. The company is undertaking this move in the aftermath of the biggest one day move in a G7 currency last Thursday, which triggered losses at the brokerage possibly totaling $225 million.

All clients of the brokerage will have to readjust their positions in order to avoid margin calls in the days to come, especially in light of the prospective volatility around the prospects for quantitative easing from the ECB and the elections in Greece on Sunday, the 25th of January.

Following the FortuneZ report, the company has issued an official announcement stating that the increases will take effect on forex instruments and gold, including all of FXCM Inc’s overseas jurisdictions.

This will bring the margin levels in overseas jurisdictions on par with the U.S. regulatory framework.

The company’s CEO Drew Niv said in the official announcement “FXCM would like to reiterate that trading on FXCM’s systems continues in the normal course of business.”

“It is important to stress that FXCM is not insolvent, has not filed for any form of bankruptcy, and is in compliance with all regulatory capital requirements in the jurisdictions in which it operates,” he concluded.

(Photo: FXCM)

bitcoin
Bitcoin (BTC) $ 55,514.00 8.30%
ethereum
Ethereum (ETH) $ 2,159.86 8.96%
binance-coin
Binance Coin (BNB) $ 472.57 8.47%
xrp
XRP (XRP) $ 1.32 16.50%
tether
Tether (USDT) $ 1.00 0.57%
cardano
Cardano (ADA) $ 1.25 10.30%
dogecoin
Dogecoin (DOGE) $ 0.311502 13.64%
polkadot
Polkadot (DOT) $ 36.70 15.71%
litecoin
Litecoin (LTC) $ 265.62 15.36%
bitcoin-cash
Bitcoin Cash (BCH) $ 918.40 11.75%
S&P 500  ^GSPC 
$4,185.47  $15.05  (0.36%)
Dow Jones Industrial Average  ^DJI 
$34,200.67  $164.67  (0.48%)
NASDAQ Composite  ^IXIC 
$14,052.34  $13.54  (0.10%)
Russell 2000  ^RUT 
$2,262.67  $5.60  (0.25%)
Crude Oil May 21  F*CL.NYM 
$63.11  $0.4000  (-0.63%)
   
$0.0000  $0.0000  (0.00%)