FCA and CySEC licensed Retail Forex broker FxPro has sent a note out to clients, indicating that it is implementing changes to margin requirements for all new positions across several trading instruments as of today, Monday, November 7, 2016 at 19:00 UK Time.
The changes affect mainly larger positions.
The note sent out by FxPro reads as follows:
Trading Conditions during 2016 Presidential Election
Important Announcements
During the 2016 US Presidential Election period, market volatility is expected to increase, with reduced liquidity and spread widening likely to affect several trading instruments.
We would like to inform our traders that the trading conditions of the below instruments will change as follows. The below changes will only affect new positions and are scheduled to come into effect on Monday, November 7, 2016 at 19:00 UK Time (GMT+0).
| Leverage | ||||||
| FX:Majors/Minors/Exotics | Max 1:500 | Max 1:200 | Max 1:100 | Max 1:50 | Max 1:33 | |
| MT4/5: | Lots | 0-10 | >10-20 | >20-30 | >30-50 | 50+ |
| cTrader: | Value USD | 0-1m | >1-2m | >2-3m | >3-5m | 5m+ |
| Other Exotic FX Pairs | ||||||
| RUB crosses | 1:10 | |||||
| MXN crosses | 1:20 | |||||
| TRY crosses | 1:33 | |||||
| DKK crosses | 1:25 | |||||
| HKD crosses | 1:25 | |||||
| SGD crosses | 1:25 | |||||
| CHF crosses | Max 1:100 | |||||
| ZAR crosses | Max 1:100 | |||||
| Precious Metals | ||||||
| MT4/5: | Max 1:100 | |||||
| cTrader: | Max 1:100 | |||||
| Indices | ||||||
| Futures (MT4/5) | Max 1:50 | |||||
| Spot (MT4/5 + cTrader) | Max 1:50 | |||||
| Shares | ||||||
| All countries (MT4) | Max 1:10 | |||||
While we will make all possible efforts to keep spreads at a minimum, wider spreads are expected.
Prior to, during, and in the aftermath of the US Elections, FxPro reserves the right to allow fixed spreads to float to reflect underlying market conditions.
In case of extreme volatility and illiquidity, FxPro reserves the right to refuse the opening of new positions, enabling ‘Close Only’ functionality
Please note that, should market conditions deem it necessary, FxPro reserves the right to make additional changes to trading conditions in the days prior to and after the US Elections.
We strongly advise you to monitor any open positions that you may have and visit the FxPro website frequently for any updates during the US Election period. We shall also be notifying you via email, should any change to margin requirements come into effect.