[Why did the dollar and yen jump from 5:30 in the early morn...
[Why did the dollar and yen jump from 5:30 in the early morning?]
In Forex, margin (balance) is required to hold an ordered position. The margin maintenance rate is always calculated while a position is held, and when the margin maintenance rate falls below 100%, a forced loss cut approaches.
A forced loss cut is executed when the margin maintenance rate falls below 50%.
However, when NY time closes and the next business day is reached with a margin maintenance rate of 50% or more and less than 100%, position holders
✅ Additional margin payments
✅ Loss cut on held positions
✅ Recite sutras and pray until the compulsory loss cut execution time the next day (around 5:30 after NY time closes, although the time varies slightly depending on the securities company)
You must choose one of these three. *This is just the case with Japan FX.
In this case, I have the impression that there were many short positions before the Bank of Japan financial decision meeting. There were probably many people who expected the yen to appreciate after the Bank of Japan financial decision meeting.
As a result, the depreciation of the yen was induced, and since the momentum did not subside in US time, the dollar yen rose by about 3.5 yen.
Are traders who are no longer able to manage their losses in a situation where their losses do not change even if they cut losses or are forced to cut losses?
![[Why did the dollar and yen jump from 5:30 in the early morning?] In Forex, margin (balance) is required to hold an ordered position. The margin maintenance rat...](https://sgsnsimg.moomoo.com/sns_client_feed/182331612/20240428/11c2fe866e70b6149743891296c1fa6c.jpg/big?area=105&is_public=true)
As a result, there were many cases of traders (traders who chose forced loss cut execution) who entrusted their wishes to a reduction in the dollar and yen after closing NY time, and it seems that large volatility occurred in the dollar yen at 5:30.
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