FCA regulated retail forex broker Hantec Markets has decided to raise margins required by clients to support leveraged positions, ahead of next week’s US Presidential election on November 8.
Hantec sent out the following message to clients:
Important Announcement: Margin Increase due to the US Presidential Election
Dear Valued Client,
Due to the expected volatility in the financial markets in light of the upcoming US Presidential Election taking place on 8th November 2016, many of our Liquidity Providers are increasing their margin requirements across the board on all instruments.
As a result, effective as at Sunday 6th November 2016, the Margin Requirement on ALL accounts for ALL instruments will be increased.
The margin requirement on ALL FX PAIRS will treble, whilst the margin requirement for all Indices and Commodities will double.
Currently if your account is set to 100:1 leverage the FX margin requirement is 1%. From Sunday FX margin requirements will INCREASE to 3%.
For an account with a leverage of 100:1 leverage (1%), the margin requirement for 1 CFD of US30 is $90. From Sunday the CFD margin requirement will double, meaning 1 CFD of US30 would require a margin of $180.
Our goal is to get the margin on all instruments back to current levels soon after the US Presidential Election results are released, but it will of course depend on our Liquidity Providers and the volatility in the market.
In preparation for the reduced leverage, you may need to lessen your risk/exposure, or close off open positions and/or add funds to your trading account.
In the period leading up to, during and shortly after the US Presidential Elections 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.
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.
Hantec Markets Limited