ACTION REQUIRED: French Election changes to trading conditions.
This article is originally referred from MyFXMarkets News.
Events which can cause significant market volatility such as the French Election can provide traders with increased opportunity, but also increased risk due to the event taking place whilst markets are closed.
During both the lead up and the period following the vote, markets may experience unusual volatility and exceptional conditions.
In order to protect our clients from the effects of significant market movements over the weekend, MYFX Markets will be taking a prudent course of action and making temporary changes to the margin requirements and stop out levels for all positions.
What is changing?
From market close on the Thursday, May 4th, we will be increasing the stop out level for all accounts and margin requirements for EUR and CHF related FX pairs and CFDs.
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
|Margin Multiple||Effective Leverage|
The margin multiple applied to each product is as follows:
|Margin Multiple||MT4 Symbol
(includes standard, .pro & .swf)
|1||ALL OTHER INSTRUMENTS|
|2||AUDCHF, CADCHF, CHFJPY, EURAUD, EURCAD, EURGBP,EURJPY, EURNZD, GBPCHF, NZDCHF, CHFSGD,CHFSEK,EURCZK, EURHUF,EURPLN, EURRON, EURRUB,EURSGD,EURTRY, EURZAR,EURCHF, EURSGD, EURSEK,EURNOK,XAUEUR, XAGEUR,XAUCHF,XAGCHF|
|3||CAC40.fs, DAX30.fs, EUSTX50.fs|
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 EUR.
For all traders with open trades on or around May 5th, 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.
MyFX Markets offers Credit Card, Debit Card, as instant and $0 fee methods to fund your trading account.
Is there anything else I should know?
During a market phase of elevated volatility, market spreads in general may widen. Please consider that Myfx Markets spreads will reflect market conditions.
We will continue to carefully monitor market volatility indicators in order to revert to our standard terms as soon as we deem it is possible.
If you have any questions or require any assistance, please contact MyFXMarkets support.
Original Source: MyFXMarkets News