Anticipating high market volatility around the U.S. presidential election, several brokerage firms are taking precautionary measures. Currency brokerages in the U.S. and internationally are temporarily increasing margin requirements on more than a dozen forex pairs to prepare.
Margin requirements—the percentage allowed of trading on borrowed funds—is generally in the 1-2% range, but in the case of the USD/MXN, it is predicted to go from 4.6% to 10% due to the uncertainty of how the U.S. election will influence the market.
For other currency pairs such as EUR/USD, USD/JPY, GBP/USD and USD/CAD, margin requirements will double, from 1% to 2%. The USD/SEK requirement will also double from 3% to 6%, while the USD/NOK requirement will increase from 1.5% to 3%.
Check out live FX rates here: marketdepth.fortex.com