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Screenshot of a breaking news alert e-mail from Q2 2017
Leading ASIC regulated Forex brokerage AxiTrader has amended its Product Disclosure Statement (PDS) and Product Schedule. Clients were notified in an email sent out earlier today. Among the major changes are stop out levels, margin requirements on selected currency pairs, index CFD contract changes and non-AUD ECN account commission updates.
The PDS contains important descriptions of AxiTrader products and services including the risks, costs and benefits of trading with AxiTrader. The PDS includes the revised Product Schedule with updated contract specifications, charges and margins. Please take the time to review the revised PDS on the AxiTrader website.
Increase in Liquidation Level
In response to client feedback, AxiTrader has reviewed the Liquidation Level at which positions may be closed.
Current Liquidation Level is set at 20%. This will increase to 50% as at close of business on 8 June, 2015.
AxiTrader may place a liquidation order for your open Position(s) when your Total Equity balance falls below the Liquidation Level or zero, whichever is the greater.
Index CFD Contract Size Changes
The contract size of popular range of Equity Index CFD’s in Europe, Asia and United States will soon change.
Currently, indices have a consistent value of 1 unit of currency x Index. The new contract sizes are set to increase to be consistent with the relevant underlying Instrument. New contract sizes are set below.
Open transactions in the current index CFD’s will be closed, netted and settled on the expiry date. AxiTrader will NOT roll existing positions into the new contract. Clients will be able to open new positions prior to the expiry date or otherwise afterwards.
Pro Accounts Commissions
Pro account service offers clients a commission based pricing option with reduced bid-offer spreads.
Commissions are charged in the account currency and are based on the number of standard contracts bought or sold in each transaction. In the case of a fraction of a contract, the commission is charged on a pro-rata basis.
Effective 8 June, 2015 the commissions charged in account currency other than Australian Dollars will be raised. This increase reflects the increased cost to AxiTrader from the rise in value of the US Dollar.
Good news for Australian Dollar account holders! Clients holding AUD denominated accounts will not be impacted.
Change in Initial Margin Requirements
Effective close of business on 8 June, 2015 AxiTrader’s initial margin system for currencies will be changed.
As each currency pair has its own particular liquidity, volatility and differing political and economic risks, AxiTrader stated its initial margining system needs to adapt and reflect the underlying market conditions.
The immediate impact for clients who trade some currency pairs will be an increase in initial margin requirements. This means that the portion of your account balance allocated to a particular trade will now be a better reflection of the currency’s risk.
The new initial margin requirements will apply to all open transactions from close of business on 8 June, 2015.
All clients are advised to ensure they have enough equity in their accounts to meet the new requirements and avoid any unnecessary liquidation of positions. You can view the updates margin requirements below:
To read the Full Contract Specifications & Margin Requirements and Product Schedule updates, click here.
You can check out AxiTrader accounts by clicking here.