Dukascopy Bank Increases Crypto Leverage After Market Crash In May
Dukascopy also announced that MT4 accounts are welcome to test crypto trading on demo accounts, as MT4 crypto trading will go live in the near future, along with additional crypto instruments.
Dukascopy Bank increased its leverage from 1: 3 to 1: 5 on BTC / USD, ETH / USD and LTC / USD with immediate effect, the company said.
The bank implicitly justified the increase in leverage by having ‘successfully harnessed’ the recent rise in volatility and the cryptocurrency crash on May 18, 2021.
Based on ‘effective and reliable risk management’, the necessary margins for crypto trading can be reduced and the maximum net exposure is increased for clients of Dukascopy Bank and Dukascopy Europe:
USD 100,000 exposure limit on BTC / USD, ETH / USD
Exposure limit of 50,000 USD on LTC / USD
BTC / USD, ETH / USD, LTC / USD are traded continuously 7 days a week.
Dukascopy also announced that MT4 accounts are welcome to test crypto trading on demo accounts, as MT4 crypto trading will go live in the near future, along with additional crypto instruments. The broker also has its proprietary trading platform, JForex4, available to its white label partners.
In March 2020, the “ craziest ” month in trading history, Dukascopy Bank issued a statement in response to general concerns about the financial condition of market participants after the recent drop in oil and stock prices. as well as the high volatility in the currency markets.
In response to accounts showing negative balances due to recent market developments, Dukascopy reported that 80 such negative accounts appeared on March 9, 2020, totaling $ 340,000, which is the risk appetite of the bank. Dukascopy Bank says it will erase these negative accounts at its expense. He will not ask for any compensation from customers.
The bank noted that all risk mitigation measures in place have proven to be effective and adequate to ensure the stability of the company during current and past extraordinary market events (abandonment of EUR / CHF peg, BREXIT , election of Trump, etc.). These measures are regularly reassessed and adjusted by the Bank.
In 2019, Dukascopy launched its own initial coin offering on February 28, a day before Mizuho Bank. Dukascoin (DUK +) is a payment token using the ERC-20 standard on the Ethereum blockchain.
Dukascoins are designed as a cryptographic means of payment to be created in limited quantities to serve both as a means of payment and for speculation. The bank will also launch Dukasnotes designed to be stable in value and guaranteed by Dukascopy via a guarantee fund subject to an independent audit and deposited with Dukascopy.