Margin Changes over French Election
Posted on: 02 May 2017 , by: Pepperstone Support , category: Pepperstone Company News
On Sunday the 7th of May, the second round of the French presidential election will take place. Regardless of the outcome, the election will be a major test for the European Union and has the potential for extreme volatility, particularly in EUR based currency pairs.
As a result, Pepperstone will make temporary changes to the maximum leverage available on FX and CFD instruments.
Margin changes for any newly opened positions will apply as of Thursday the 4th of May 00:00 server time (GMT 3) while margin changes for all positions will apply as of Friday the 5th of May 00:00 server time (GMT 3). These changes will be in effect until Monday 8th May 00:00 server time (GMT 3).
New margin / leverage requirements for affected instruments are as follows:
|All Index CFDs||All EUR pairs||Other instruments|
We kindly advise our clients to carefully consider and evaluate the potential impact of the above changes as well as the event itself on your existing and future positions on these products. Please also consider the potential trading conditions below in the lead up to the event:
- Extreme volatility on EUR based currency pairs and European indices.
- The propensity for liquidity providers to significantly limit their liquidity, leading to a considerable widening of spreads as well as potential increased amounts of slippage on executed orders.
- Ensuring you have enough available margin / equity in your account for the days leading up to and during the voting/announcement of results. This includes "hedged" positions (long and short on the same symbol believing this eliminates your market risk) which if spreads widen have the potential to stop out positions.
Should any further trading terms change on our products, Pepperstone will endeavour to contact you via email, MT4 or by changes made to our website.
We thank you for your understanding and continued support of Pepperstone and wish you well in your trading during this particularly volatile period in the markets. If you have any further questions feel free to contact support.