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samifx

Why Do Brokers Reduce Leverage at Open/close?

By samifx, in General Trading

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samifx    10

samifx
Posted

why do some brokers reduce leverage settings when it comes to market close and open. I want to confirm is it because of the "gap" and higher leverage could lead to higher profit for clients? I only generally see this at market makers!

 

Can someone confirm?

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sergso    10

sergso
Posted
why do some brokers reduce leverage settings when it comes to market close and open. I want to confirm is it because of the "gap" and higher leverage could lead to higher profit for clients? I only generally see this at market makers!

 

Can someone confirm?

 

Most brokers internalize orders (take the other side) and want to limit their risk of adverse moves.

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