Brokers Start to React to Turmoil in Turkey, Limiting Turkish Lira Trading
Posted: Sun Jul 17, 2016 8:52 am
Cautious brokers are repeating the positive lessons of handling the Brexit turmoil and applying risk aversion measures to the volatile situation in Turkey. By limiting the ability to open highly leveraged positions on the TRY in these uncertain times they can prevent both a systemic failure and an exposure that is likely to hurt many clients in case of an unprecedented price move.
In terms of volatility, we can see that after the TRY/USD fell as much as over 4.5% in the wake of the alleged coup attempt, it has today bounced back over 2% today – very significant in an industry ... (read more)