Oil prices have become strongly affected by political decisions and rumors recently, resulting in a significant increase of volatility and heightened probability of large price gaps. The bank expects nervous market reactions to any decision of upcoming OPEC session. In order to reduce risks, particularly the possibility of negative equity, Dukascopy Bank is temporarily reducing leverage on oil CFDs (BRENT.CMD/USD, LIGHT.CMD/USD and DIESEL.CMD/USD) to 1:10.
The leverage reduction measure will be applied in two steps:
o For clients with no open positions in the instruments concerned the change will be done today (Wednesday. 8.04.2020) at 15:00 GMT.
o For clients with open exposure in any of the three instruments named, the reduced leverage will come into force on Thursday 9.04.2020 at 7:30 GMT.
We invite all traders with open positions in the instruments concerned to evaluate if additional measures such as reducing their exposure or addition of funds is needed.
The reduced leverage will stay in force until further notice.