Dukascopy Bank ups crypto leverage after market crash in May

Rick Steves

Dukascopy has also announced that MT4 accounts are welcome to test crypto trading on Demo accounts as MT4 crypto trading will go live in the nearest future, as well as additional crypto instruments.

Dukascopy Bank has increased leverage from 1:3 to 1:5 on BTC/USD, ETH/USD, and LTC/USD with immediate effect, the company announced.

The bank implicitly justified the leverage boost with having “mastered successfully” the recent rise in volatility and the crash of crypto currencies on 18th of May 2021.

Based on “efficient and reliable risk management”, the margins needed to trade crypto can be reduced and the maximum net exposure is increased for Dukascopy Bank and Dukascopy Europe clients:

100 000 USD exposure limit on BTC/USD, ETH/USD
50 000 USD exposure limit on LTC/USD
BTC/USD, ETH/USD, LTC/USD are traded non-stop 7 days a week.

Dukascopy has also announced that MT4 accounts are welcome to test crypto trading on Demo accounts as MT4 crypto trading will go live in the nearest future, as well as additional crypto instruments. The broker also boasts its proprietary trading platform, JForex4, available to its white label partners.

In March 2020, the ‘craziest’ month in trading history, Dukascopy Bank posted a statement in response to general concerns about the financial situation of the market participants after the recent oil and stocks price drops as well as high volatility on the currency markets.

In response to accounts incurring negative balances as a result of the recent market developments, Dukascopy reported that 80 such negative accounts appeared on March 9, 2020, totalling $340,000 which is in line with the Bank’s risk appetite. Dukascopy Bank says it will clear those negative accounts at its expense. It will not be asking clients for any compensation.

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 previous extraordinary market events (abandon of the EUR/CHF peg, BREXIT, Trump election, etc.). Such measures are regularly reassessed and adjusted by the Bank.

In 2019, Dukascopy launched its own initial coin offering on February 28, one day prior to Mizuho Bank. Dukascoin (DUK+) is a payment token using the ERC-20 standard on the Ethereum blockchain.

Dukascoins are designed as a crypto means of payment to be created in limited quantity to serve both as payment and speculation means. The bank will also launch Dukasnotes which are designed to be stable in value and are guaranteed by Dukascopy via a guarantee fund subject to independent audit and deposited with Dukascopy.

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