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Screenshot of a breaking news alert e-mail from Q2 2017
LeapRate has learned that a number of leading retail forex brokers are altering trading conditions in advance of this Sunday’s French elections. The first round of polling is not expected to elect a new President, with the expected final runoff between the two top vote-getting candidates set to take place two weeks later, on Sunday May 7.
For example, FxPro is raising margin requirements on all European Indices, Spot and Futures to 4% (i.e. 25x max leverage) which came into effect earlier this morning (Friday, April 21) as of 9:00am GMT. FxPro’s margin changes will affect new positions only. Existing positions and other instruments will not be affected by this change.
At Exness, from later today, Friday, April 21, two hours before the market closes, until Sunday, April 23, two hours after the market opens, the margin requirements for new positions opened will be calculated based on a maximum leverage of 1:100.
We believe that similar moves are being made at a number of other online brokers.
The Exness and FxPro notes to clients read as follows:
Increase in margin requirements ahead of French elections
We would like to inform you that we will be adjusting our trading conditions in anticipation of the predicted market volatility running up to the French elections, which will take place on April 23, 2017.
From Friday, April 21, 2 hours before the market closes, until Sunday, April 23, two hours after the market opens, the margin requirements for new positions opened will be calculated based on a maximum leverage of 1:100, in order to safeguard our clients from the market turmoil resulting from the elections.
Traders can be exposed to substantial risk when the market makes steep movements; applying higher margin requirements during times of market volatility is something we feel strongly about, as it will help our clients manage their risk accordingly.
FxPro Trading Conditions during the 2017 French Presidential Election
The first round of the French Presidential Election will be held on Sunday, April 23, 2017. In the days prior to the election, as well as in the days following the event, increased market volatility is expected to affect the markets, with wider spreads expected across several instruments.
We would like to inform our traders that the margin requirements of the below instruments on all FxPro platforms will change as follows:
Instrument: All European Indices, Spot and Futures: Margin Required: 4%
The above change in margin requirements will come into effect on Friday, April 21, 2017, at 09:00a.m. (GMT) and will affect new positions only. Existing positions and other instruments will not be affected by this change.
- While we make all possible efforts to keep spreads at a minimum, please note that wider spreads are expected.
- Prior to and in the aftermath of the referendum, 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 our trading conditions in the days prior to and after the French Presidential Election.
We strongly advise you to monitor any open positions that you may have and visit the FxPro Blog frequently for any important updates. We shall also be notifying you via email, should any other changes to the current margin requirements come into effect.