In finance, a margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risks of their counterparty most often the broker.
Due to the uncertainty around the negotiations of Greece debt the market volatility has increased. Now all eyes turn to July the 5th as Greeks should vote on the referendum for approval or rejection of the austerity measures required by its creditors.
The ActivTrades broker protects again its clients by substantially limiting their losses by temporarily increasing the margins requirement on July the 3rd. Hence by protecting their clients’ interests and protecting the interests of the company as a whole.
This measure saved me from the EUR/CHF back on the 15th of January 2015 where they also raise the margins requirement and I deleveraged my position that took a hit on the 19% drop.