XM would like to inform you that the upcoming Italian Constitutional Referendum, which will take place on the 4th of December 2016, will possibly lead to increased market volatility, thin market liquidity, abnormal spreads and price gaps in EURO currency pairs and stock markets.
In light of the referendum and expected high volatility, XM has decided to take extra risk management measures in order to protect its clients.
From 10:00 pm MT4 server time (GMT+2) on Friday, 2nd of December 2016, the following maximum leverage will be applied on XM MT4.
- 1% (100:1 leverage) for EURO currency pairs and Gold and Silver
- 3% (33:1 leverage) for all CFDs on Equity Indices and Commodities
The above changed of margin requirements will be applied to all existing open positions and new positions.
This change is only temporary measure, and it will be completely waived for all affected positions, and margin requirements will revert back to normal (as per normal client account leverage settings) by Monday 5th of December 2016.
The leverage will be back to normal shortly after the announcement of the results of the referendum and the opening of the markets though, there could be further changes to the maximum leverage limitation upon XM’s announcement.
Clients who intend to keep open positions during the weekend, should ensure that their trading accounts are sufficiently funded to avoid any disturbances from possible margin calls and/or stop-outs in their trading activity.