KVB Kunlun to set “Net Open Position limits” for UK General Election

June 6, 2017

The UK General Election - Adjustment of Trading Products Notification.

KVB Kunlun to set “Net Open Position limits” for UK General Election

This article is originally referred from KVB Kunlun News

Please be reminded that before the announcement of the UK General Election’s result, market volatility is likely to exacerbate, giving rise to uncertainty and may cause a lack of market liquidity.

Consequently, effective from 7th June 2017 (Wednesday) system time 00:00:00, in order to protect the funds of KVB customer accounts and thereby reduce risk, KVB Kunlun will take an interim protection measure by making a temporary adjustment to the Net Open Position limits of some currency pairs for each account.

For more details, see the list below.

Trading Currency Net Positions (Standard Lots)
After Adjustment
GBPUSD 50
EURGBP 20
GBPAUD 20
GBPCAD 20
GBPCHF 20
GBPJPY 20
GBPNZD 20

*The Net Position limit adjustments apply to all client accounts. KVB Kunlun will review and may make adjustments to the above “interim protection measures” again based on the prevailing market conditions after 8 June 2017. These adjustments will be announced at a later stage.

During this period, please be aware of the likelihood of the following risks:

  1. The financial market may lack liquidity. Therefore clients may not be able to trade normally, including the ability to open new position and to close positions.
  2. Given the market situation at that time, buying and selling price differences may be extremely wide.
  3. There is a strong probability that transaction orders may not be able to be accepted (including cancelling, placing take profit and stop-loss orders, etc).
  4. The actual execution price of Buy Stop, Sell Stop and Stop Loss Order may differ significantly from the price you have originally set in the ForexStar system due to a lack of market liquidity and widening of the bid ask spread.
  5. Given the uncertainty of the market, your account may be stopped-out due to wider spreads (including all hedge or partially hedge trading). These circumstances may lead to a negative balance in your account.

The above situation is in line with market practice and is outlined in the terms and conditions of the Client Service Agreement which you have signed with KVB.

Please pay close attention to the trade positions and the status of your margin accounts particularly during volatile market conditions.

If you have insufficient margin in your account, KVB Kunlun may be forced to liquidate your positions in order to prevent additional risk. KVB is not obliged to give any additional notification of such an event.

We strongly advise you to trade with caution and be particularly vigilant when trading during this period. If you have any further enquiries, please do not hesitate to contact our online customer service line or call customer service. Thank you for supporting KVB and we wish you happy trading!

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Original Source: KVB Kunlun News

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