Axiory warns clients of potential volatility around the Swiss franc

August 25, 2021 at 09:39 PM

Award-winning leading Forex and CFDs broker, Axiory Global, has lowered its leverage to 1:20 on all its Swiss franc (CHF) currency pairs due to uncertainty and potential volatility around the Swiss franc (CHF). 

Following these recent developments, Axiory Global CEO Roberto d’Ambrosio said; “Adequately managing risk means to be proactive rather than reactive, by analyzing risks both in terms of impact and likelihood, utilizing specialized expertise in the interest of both the firm and its clients. We at Axiory pride ourselves on prioritizing the stability of our trading environment and the safeguard of our clients’ trading and assets over any other element.”

It seems like Axiory is one of the first global brokers to decide and protect its clients from the potential of greater or extreme volatility around the CHF.  

In the beginning of the week, the broker has warned its traders about the potential increase of the volatility in the market and advised them to take all the needed risk-based measures while trading CHF currency pairs. 

So, what exactly has cause this volatility? Since 2015, the Swiss National Bank has been purchasing foreign currency-denominated securities to try to curb the rising value of the franc.  In July, their reserves surpassed 1 trillion Swiss francs for the first time and their investment portfolio became one of the most expanded balance sheets among Central Banks in terms of foreign currency holdings. 

However, the Swiss National Bank is not the first bank to expand its balance sheet in recent years. This situation still stands out because of the bank’s actions when it invested almost a quarter of its reserves in foreign equities rather than government bonds. 

In view of this possible increase in volatility, Axiory will continue serving its clients by taking every measure necessary to protect them. 

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