A spike in price volatility across precious metals has prompted OANDA Japan to issue formal caution to traders, warning them of unstable market conditions and the potential for sudden trading interruptions.

The broker issued a public warning today (Wednesday), highlighting severe price swings in silver (XAG/USD) and signaling that trading conditions may continue to deteriorate in the days ahead.

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OANDA Flags Market Risk in Silver Trading

The broker reported that silver CFDs have seen “much more volatile price movements than usual,” leading to unpredictable trading conditions and increased risks for leveraged positions. The sharp moves have already caused spreads to widen, meaning execution costs for traders have risen significantly.

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According to the notice, liquidity in the interbank market has also dropped, making it harder to open or close positions without slippage. This environment increases risk for retail traders, who may face sudden price gaps.

Instability in Funding Rates

OANDA Japan also warned of instability in funding rates, which are fluctuating sharply in line with market stress. As a result, margin requirements for precious metals CFDs—especially XAG/USD—may be adjusted at short notice. The broker urged traders to monitor their account balances closely to avoid forced liquidations during volatility spikes.

The firm noted that worsening conditions could force it to take protective action: “Depending on the condition of the underlying market, we may temporarily suspend trading of commodity CFDs, particularly silver (XAGUSD), to protect client capital.”

Expect ongoing updates as this story evolves.

Source: Finance Magnates