Dukascopy will lower leverage to 30:1
Risks of a weekend gap related to Greece have led Dukascopy to lower leverage on any pair containing the euro to 30:1, according to an email sent to clients. It will be effective at the top of the hour.
In the US, leverage is limited to 50:1 but Dukascopy offers clients leverage from 100:1 to 300:1 so some trades could be closed out due to lack of margin. In all likelihood, traders are short the pair although it would have a negligible effect on the whole market.
Here's what they had to say:
Some of Dukascopy liquidity providers warn their clients about an excessive risk of market gaps on Euro-related currency pairs related to Greece and its possible exit from Euro Zone which could arise at any time. In particular, there is a risk of FX markets opening on Monday morning at a significantly different level from the Friday night close.
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In addition, Dukascopy warns all the traders that there is a higher than usual probability of wide spreads, high slippage and rejects after market opening. It is recommended to reduce the exposure in EUR currency pairs, in order to avoid risk of possible Margin Cuts and negative balances.
They say leverage will be ramped back up when the market re-opens next week.