Turkey restricts forex trading amid outcry from amateur losses
After a rush by amateur investors to strike it rich in Turkey's foreign exchange market, massive losses have led to new restrictions on the financial instrument.
Al-Monitor reported that Turkey’s Capital Markets Board (SPK) has initiated restrictions on foreign exchange trading in the country, lowering the leverage ratio from 100:1 to 10:1 after controversies stemming from massive losses suffered by amateur investors. Advocates for the regulations reported that 20,000 people had been victimized to the tune of hundreds of millions of dollars. The move to restrict the financial instrument, used by institutional investors to hedge risks, is an obstacle to Istanbul’s goal of becoming a global financial hub, and could see easing in the future.