Swiss Forex Marketplace Dukascopy Will Reduced Leverage Ahead of US Election

Swiss-based Forex broker Dukascopy has announced that leverage on all currency pairs will be reduced on US Election day, citing unusual volatility and unpredictable market liquidity. In particular, Dukascopy will be reducing leverage on the USD/MXN pair to 1:10, two days prior to the election, on November 6, while all other FX pairs will have leverage ratios trimmed on Tuesday, November 8 at 10:00 GMT.

Dukascopy has clarified that only accounts with balances in excess of $30,000 USD will be subject to the leverage reductions:
“All other accounts (under USD 30,000 or equivalent) that experience a significant increase of equity due to profit or deposit on Tuesday 8 November will be treated on a case-by-case basis.”
For most of the standard FX pairs, leverage during the election will be reduced to standard weekend levels (1:30), with some exotic pairs like CAD/HKD, EUR/TRY and HKD/JPY having weekend leverage of 1:10. Weekday leverage ratios for most currency pairs on Dukascopy are usually around 1:100.

Trading conditions will be returned to normal on November 9, however, Dukascopy has said that tight leverage ratios may remain suppressed if market conditions warrant it.

Similar policies were implemented ahead of the Brexit vote in June, where maximum leverage ratios for GBP and EUR pairs were reduced to 1:30. In the case of Brexit, Dukascopy maintained the restrictions for 6 days.