OANDA Japan Resumes Trading Turkish Lira Amid Cautious Outlook

OANDA Japan has informed its clients that they can now open new positions in TRY/JPY and USD/TRY on the Tokyo server. These Turkish Lira-related trades were previously restricted. However, if the situation in Türkiye worsens, OANDA might increase margin rates, halt trading, or force settlements. Traders should be cautious when dealing with Turkish Lira positions.

Background

OANDA’s servers in Tokyo have started providing these trading pairs after a period of high fluctuations and economic uncertainties surrounding the Turkish Lira. This lira has been under pressure from internal and external problems such as inflation rate escalation, political instability, and anxiety over Turkey’s central bank policies.

Swap Rate Calendar

For traders dealing with the TRY/JPY and USD/TRY pairs, OANDA Japan gives them a calendar which shows the current swap rates for these pairs. Swap rates are those interest rates that you either pay or receive when holding a currency pair overnight which is very important because it helps in managing long term positions.

Cautionary Note

OANDA Japan however warns traders to be careful about risk management. This would entail emergency measures like raising margin rates, suspending trades or closing positions if Turkey’s economy worsened so as to avoid huge client losses.

Volatility of Turkish Lira

The value of Turkish lira has recently been highly volatile compared to major currencies like US dollar and Japanese yen. The value of this currency frequently changes due to high inflation, political risks associated with it, and concerns about control by the Turkish government over its central bank and monetary policy.

OANDA Japan’s Response

Current market conditions have led OANDA Japan to decide on reopening the markets for these currencies. This decision allows traders to work with those pairs again, but only if they are careful about risk management. Those who want to deal with Turkish Lira need full information about its opportunities and the risks it carries. They have a chance to earn high returns, although they need to stay informed of the changes in Turkey’s economic scene and be fast when dealing with unexpected shifts in the markets.

Conclusion

The provision of TRY/JPY and USD/TRY by OANDA Japan creates a new opportunity for traders. However, this also means that traders must handle their positions carefully in times like this because the Turkish lira is quite volatile.

Also read: ATFX Receives Type 3 License from Hong Kong to Expand in Asia