ACTION REQUIRED: US Election changes to Forex trading conditions

November 2, 2016

Please be aware of the changes due to US Elections.

ACTION REQUIRED: US Election changes to Forex trading conditions

Events which drive significant market volatility such as the November 8 US Election can provide traders with increased opportunity, but also increased risk.

In order to protect our clients from the effects of significant market movements, our Risk Department will be taking a prudent course of action and making temporary changes to the margin requirements and stop out levels for all positions.

During both the lead up and the period following the vote, markets may experience unusual volatility and exceptional conditions. With increased market volatility comes increased opportunity that many traders may seek to take advantage of, but market volatility can also come with increased risk.

What is changing?

From market close on the Thursday, 3rd November, we will be increasing the margin requirements for all products.

We expect that changes to trading conditions will be industry wide, and that these changes will only be temporary.

Rest assured, you will be notified if requirements or dates are revised at any point.

Changes to Margin Requirements

We will be adjusting the margin requirement, as a multiple of your current margin requirement. For example, if your current leverage is 100:1 as an example, your new effective leverage would be:

Margin Multiple Effective Leverage
2 50:1
3 33:1
5 20:1

 

The margin multiple applied to each product is as follows:

Margin Multiple MT4 Symbol
(includes standard, .pro & .swf)
2 CHFSEK, EURCHF, EURNOK, EURSEK, EURUSD, USDCHF, USDNOK, USDSEK
3 AUDCAD, AUDCHF, AUDJPY, AUDNZD, AUDUSD, CADCHF, CADJPY, CHFJPY, EURAUD, EURCAD, EURGBP, EURJPY, EURNZD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNOK, GBPNZD, GBPSEK, GBPSGD, GBPTRY, GBPUSD, NOKJPY, NOKSEK, NZDCAD, NZDCHF, NZDJPY, NZDUSD, USDCAD, USDJPY
5 AUDSGD, BRENT.fs, CAC40.fs, CADSGD, CHFSGD, CHINA50.fs, COCOA.fs, COFFEE.fs, COPPER.fs, DAX30.fs, DJ30.fs, EURCZK, EURHUF, EURPLN, EURRON, EURRUB, EURSGD, EURTRY, EURZAR, EUSTX50.fs, FT100.fs, HSI.fs, MXNJPY, NAS100.fs, NATGAS.fs, NK225.fs, S&P.fs, SGDJPY, SOYBEAN.fs, SPI200.fs, TRYJPY, USDBRL, USDCLP, USDCNH, USDCNY, USDCOP, USDCZK, USDHKD, USDHUF, USDIDR, USDILS, USDINR, USDKRW, USDMXN, USDMYR, USDPHP, USDPLN, USDRON, USDRUB, USDSGD, USDTHB, USDTRY, USDTWD, USDZAR, WTI.fs, XAGAUD, XAGEUR, XAGUSD, XAUAUD, XAUEUR, XAUUSD, XPDUSD, XPTUSD, ZARJPY

 

How does this impact my trading?

If you are trading, or holding positions during this period, your action is required.

Please take a moment to consider whether this impending change will have any effect on your trading account. The additional margin may require you to add funds to your account, or to reduce your positions, or risk being placed in margin call or being auto-closed out of some of your positions.

If you do not meet the higher margin obligation, your positions will be automatically closed out if the margin in your account is less than 50% of the minimum required level.

We encourage all clients to ensure they monitor their trades closely around the time of the election voting, particularly those trades closely associated with the US dollar.

For all traders with open trades on or around November 8, we would advise ensuring all accounts hold sufficient margin and free equity to cover any potential rise in margin requirements or significant market and price movements.


If you are uncertain how this may affect your account, you may wish to consider reducing any open positions and reviewing any active pending orders.

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