ACTION REQUIRED: UK Election – Changes to Trading Conditions.
This article is originally referred from MyFX Markets News.
Events which can cause significant market volatility can provide traders with increased opportunity, but also increased risk due to the event potentially taking place whilst all or some markets are closed.
During both the lead up and the period following the event, markets may experience unusual volatility and exceptional conditions.
In order to protect our clients from the effects of significant market movements as a result of the UK Election, MYFX Markets may take a prudent course of action and making temporary changes to the margin requirements for certain trading products.
What is changing?
On Thursday 8th June we will be increasing margin requirements for CFDs. We will start applying these changes at 00:00 MT4 Server Time (07:00 AEDT).
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
MT4 Symbol – FT100
Temporary Margin Rate – 3%
We further reserve the right to additionally reduce the Leverage setting of specific accounts.
With a hedged position, if spreads widen dramatically, this could lead to one or all positions being closed, if you have insufficient funds, as positions are revalued individually to the Bid/Ask prices.
How does this impact my trading?
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 the minimum required stop out level.
We encourage all clients to ensure they monitor their trades closely around the time of the event, particularly those trades closely associated with the FT100.
For all traders with open trades on the lead up to the event, 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, and Bank Transfer as instant* and $0 fee methods to fund your trading account.
Original Source: MyFX Markets News