Following a few adjustments to Euro pairs' margin requirements, FirewoodFX recently announced that they would normalize the levels for certain Euro pairs. Previously, the St. Vincent and the Grenadines registered broker implemented margin changes in anticipation of ECB policy announcement, which was expected to confirm a large-scale stimulus. In addition, the Euro turmoil that is still ongoing due to the Greek crisis prompted FirewoodFX to enforce preventive measures in case of price spikes at this week's opening session.

Margin and Leverage Change Announced ahead of ECB Meeting

FirewoodFX immediately put an alert on market changes after the announcement of the ECB's decision to provide QE (Quantitative Easing) worth 60 billion Euros. This broker posted a notification on the news page on its official website just before the start of the ECB meeting. The notification point of initial notification warned traders about the possibility of increased margin limits which can be hiked 5 times higher than usual.

In addition, FirewoodFX also announced its plan to reduce leverage 5x about 5 hours before the market close last week and urged traders who still have trading positions with Euro pairs to close their orders.

Two Euro Pairs Normalized, Others Remain Doubled

On January 23, FirewoodFX updated the margin limit rules for the EUR/USD and EUR/JPY pairs. Both pairs can be traded with a specified margin requirement five times greater than the normal policy. So, if at a leverage of 1:1000, the required margin is 100 Euros, then the trader needs a margin of 500 Euros to trade with the EUR/USD or EUR/JPY pairs. These conditions are informed to apply until January 26. On the same date, this broker finally announced the return of margin requirements at standard rates for the two pairs mentioned above.

Meanwhile, trading conditions for other Euro pairs such as EUR/AUD, EUR/GBP, EUR/CAD, and EUR/NZD are still regulated with a margin limit 2 times larger than the normal level.

FirewoodFX's decision to make changes to the requirements on this margin is made possible due to their leniency when it comes to news trading. FirewoodFX has a "no trade restrictions" policy which allows all its clients to take advantage of any trading method. The use of hedging, scalping, and news trading strategies is still permitted as long as the trader is not registered in a promotion that prohibits using the above trading methods.