OANDA Japan introduces new market capitalization limits starting August 12, 2024, affecting trading activities on NY and Tokyo servers.
OANDA Japan introduces new market capitalization limits starting August 12, 2024, affecting trading activities on NY and Tokyo servers.
OANDA Japan will implement new open interest market capitalization limits starting Monday, August 12, 2024. This change marks a shift in the trading policies for its servers, aiming to enhance market stability and manage risk more effectively.
For traders using the NY Server, the new policy will aggregate the total value of all subaccounts to determine market capitalization limits. Specifically, suppose the combined market capitalization of all unsettled short and long positions across all trading accounts on the NY Server reaches a threshold of 60 million USD. In that case, they will process no additional orders. This measure controls the volume of outstanding positions and prevents excessive risk exposure.
In contrast, the Tokyo server will apply the limit per-subaccount basis. Under this policy, if the absolute value of the market capitalization of all open short positions or all open long positions within an individual trading account on the Tokyo Server hits the 60 million USD mark, no further orders will be accepted for that specific account. This approach ensures they closely monitor risk management at the individual account level, promoting more granular control over trading activities.
Implementing these limits underscores OANDA Japan’s commitment to maintaining a balanced and secure trading environment. By setting these new thresholds, the company aims to safeguard against market volatility and ensure that trading practices remain within manageable levels. They encourage traders to review their positions and adjust their strategies accordingly in anticipation of these changes.
Overall, this policy adjustment reflects OANDA Japan’s proactive stance in adapting to market dynamics and reinforcing its risk management framework. Traders on both the NY and Tokyo servers must stay informed and plan their trading activities with these new limits in mind to avoid disruptions and ensure compliance with the updated regulations.
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