This article is originally referred from EightCap News
With the U.S. presidential election taking place next week on November 8, 2016, there is anticipation of increased volatility and the possibility of significant moves across the financial markets.
Given the expected volatility, it has become necessary for us to make temporary adjustments to the trading conditions of our trading products.
Specifically, on Friday, November 4, 2016, effective from 16:00 AEDT, the margin levels required to maintain open positions will be temporarily increased to the following:
All currency pairs – 1.0%
Gold – 2.0%
Silver – 3.0%
Oil – 2.0%
US30 – 2.0%
SPX500 – 2.0%
What actions do you need to take?
In anticipation of the new margin requirements, we strongly encourage you to promptly review any open or existing trades in your trading account and consider to amend or cancel pending orders to open new trades as these will be opened at the new temporary margin levels.
How can you protect your trading account?
Regardless of the leverage settings in your account, the new margin rates will affect all accounts. Therefore, please ensure that your account has sufficient margin to satisfy the new requirements and to remain above the liquidation level by no later than the time specified above.
If you do not have sufficient funds in your trading account, your position(s) may be subject to an automatic close out once your free margin percentage falls below 50%.
When will margin rates return to normal?
We intend to adjust margin back to normal levels on Monday, the 14th of November 2016, however we will be monitoring the events closely and may choose to hold these temporary trading conditions until we see fit.
Will there be further changes?
Whilst we do not expect to make any more changes, depending on market volatility we may need to apply further changes and there may be limits placed on internal transfers.
Original Source: EightCap News