Margin Requirements may be increased due to German Election this Sunday

September 20, 2017

Possible Margin Changes due to German Elections.

Margin Requirements may be increased due to German Election this Sunday

This Sunday, September 24, 2017 marks the date the German people will cast their vote for the German Chancellor and the Bundestag.

As it stands now, Angela Merkel, who is running for her fourth consecutive time, is expected to win the elections against SPD’s Martin Schulz but could fall short of a majority, which is pretty common.

Polls currently show that Merkel’s Christian Democratic Union (CDU) will be the largest party after the elections with 36.9% of the projected votes, followed by the SPD (22.4%), Die Linke (9.6%), AfD (9.8%), FDP (9.2%), and Grunen (7.8%).

Due to the upcoming German elections, high amounts of volatility are to be expected in the financial markets.

The elections will take place on a Sunday and, therefore, could result in substantial price gaps in the markets as they open the following day.

This may increase the risk of your account becoming liquidated, which is why it is highly advised to either reduce your exposure or keep your account well capitalised before this event rolls over.

For the moment, Royal will not increase its margin requirements. However, should there be an increase in estimated volatility; Royal reserves the right to change margin requirements at any stage in order to better protect its clients and itself from potential risk.

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