To protect you, our clients from sudden and extreme volatility on Swiss franc (CHF) trading, we’re lowering the leverage on all CHF pairs to 1:20 as of Friday, August 27th.
“Adequately managing risk means to be proactive rather than reactive, by analyzing risks both in terms of impact and likelihood, utilizing specialized expertise in the interest of both the firm and its clients,” said Axiory Global CEO Roberto d’Ambrosio.
We’re proud to be one of the first global brokers to take definitive steps to protect you from the potential of greater volatility around the CHF.
“We at Axiory pride ourselves on prioritizing the stability of our trading environment and the safeguard of our clients' trading and assets over any other element," said d’Ambrosio.
The volatility expected around the CHF is due to recent actions by the Swiss National Bank (SNB).
To clarify the situation for you, here’s a brief overview of what’s been happening;
Since 2015, the Swiss National Bank has been purchasing foreign currency-denominated securities to try to curb the rising value of the franc.
In July, their reserves surpassed 1 trillion Swiss francs for the first time and their investment portfolio became one of the most expanded balance sheets among Central Banks in terms of foreign currency holdings.
While the SNB is not alone among central banks in expanding its balance sheet in recent years, it stands out because it invests almost a quarter of its reserves in foreign equities rather than government bonds.
Our team will be closely monitoring the situation in the upcoming months and will take any steps necessary to decrease your exposure to risk and increase your protection.
We’re advising you to be extra vigilant and adopt a risk-based approach while trading CHF crosses.
If you have any questions, don’t hesitate to reach out and speak with one of our team members.