ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Currencies

Japan eyes tighter leverage cap on forex trading

Proposal before regulator would lower limit on gearing from 25-to-1 to 10-to-1

Japan's financial watchdog is taking steps to limit retail investors' risk exposure in forex trading.   © Reuters

TOKYO -- Japan's Financial Services Agency is considering lowering the maximum leverage allowed on foreign exchange trading by individuals as soon as this spring to curb risk taking.

The agency is studying a proposal to bring the leverage cap from 25-to-1 down to 10-to-1, based on trends in historical market volatility. The change would increase the margin deposit required for trading the same amount of currency by 150% and lower the potential for investment gains.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more