Hantec Markets increases margin requirements ahead of Brexit vote


FCA regulated retail forex broker Hantec Markets has issued a note to clients outlining increases in margin requirements ahead of next week’s UK Brexit referendum, announcing minimum 4% margin requirement (max leverage 25x) starting next week until a day after the Brexit vote.

The note set out by Hantec reads as follows:

Hantec Markets prepare for Brexit

Dear Valued Client,

The United Kingdom EU Referendum (“Brexit” vote) will take place on 23 June 2016. This will create increased market volatility which could potentially lead to significant gaps in pricing and periods where certain markets will become illiquid.

In the period leading up to, during and shortly after this vote we will closely monitor liquidity, market volatility and spreads and want to ensure that you are aware of the risks associated with trading under these circumstances.

Restricted Leverage

As a consequence of the potential for heightened market movements, please be advised that leverage for all accounts will be restricted to 25:1 commencing 19th June until 24th of June and potentially for a short while after this date depending on market volatility. Instruments with fixed margins will also change as follows:

CFD SYMBOL Name Current margin ($) Brexit margin ($)
DAX Ger30 Pro 5,000 10,000
FTSE UK100 Pro 2,000 10,000
NQ Nas100 Pro 875 2,500
ES SPX500 Pro 1,406 3,000
DM DJ30 Pro 1,500 3,000
GC Gold 1,500 4,500
SI Silver 1,500 4,500
HG Copper 1,435 1,500
CL US-Oil Pro 1,500 1,500
NG NGAS Pro 1,375 1,500
BB Brent Crude Oil 1,500 1,500
SB Sugar 210 210
KC Coffee 700 700
CT Cotton 500 500
CC Cocoa 220 220
C# Corn 675 675
W# Wheat 810 810
S# Soya 930 930
AD AUD 1,180 1,180
BP GBP 1,010 4,000
CD CAD 1,210 1,210
EC EUR 2,700 4,000
JY JPY 2,700 4,000
NZ NZD 1,180 1,180
SF CHF 1,750 4,000
DX US Dollar Index 1,650 3,000

It is therefore extremely important that you are aware of the potential risks surrounding this event and you do not over leverage yourself. You should also ensure that your account is sufficiently funded at all times to hold and maintain your open positions.

Example

Currently if your account is set to 100:1 leverage the margin requirement for 1 standard lot of EURUSD is €1000 and for an account with a leverage of 200:1 leverage  the margin requirement is €500. For the period 19th -24th June and potentially for a short while after this date depending on market volatility Leverage will be restricted to a maximum of 25:1 and as such the margin requirement will increase to €4000.

Order Execution

During this period of heightened market volatility and illiquidity your stop and limit orders are not guaranteed to be filled at your order level. Orders are converted to market orders once they are triggered and a lack in market depth and liquidity could result in significant slippage.

If you need to fund your account, please click here for all available funding methods.

Please do not hesitate to contact us if you have any questions regarding this announcement.

Kind regards,

Hantec Markets

Hantec Markets Limited
Hantec House 12-14 Wilfred Street, London, SW1E 6PL
Authorised and Regulated by the Financial Conduct Authority – FRN 502635
www.hantecfx.com | +44 (0)20 7036 0850 | [email protected]

 

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Hantec Markets increases margin requirements ahead of Brexit vote

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