Financial Times - Japan limits forex trades of ‘Mrs Watanabes’
Japan’s Mrs Watanabes, the shorthand name for the large number of Japanese retail investors, are being restricted in the amount they can borrow to finance their bets in the currency markets, in a move by the Japanese regulator to eliminate what it sees as excessive speculation by inexperienced traders.
The new rule on margin trading, which came into effect on Sunday, limits the amount that retail traders can borrow to 50 times the amount of collateral used. From next year, rules will be tightened further to lower the limit to 25 times. There were no limits imposed before.
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