UK-regulated forex brokerage ActivTrades announced it is hiking its margin requirements on some instruments in connection to the upcoming referendum on constitutional changes in Italy on December 4.
According to ActivTrades, the outcome of the vote has the potential to cause high volatility and turbulence on the financial markets. For this reason the forex broker is temporarily raising four times the margin requirements on the following instruments:
– CFDs on ITA40 index
– CFDs on all Italian stock.
The changes come into effect on December 2, Friday, at 4 PM CET.
“In case you have any open positions on those instruments, please keep an eye on your margins, and if necessary, minimize or close your positions, or you can deposit extra funds in your accounts” the broker said.
ActivTrades notes that if traders keep margin levels at more than 400% by 4 PM CET on December 4, they would have the required margin levels upon market open on December 5, Monday and would minimize the risk of automatic stop out on open positions.
London-based ActivTrades is a financial markets trader, active in the forex, contracts for difference (CFDs), and spread betting markets. Its product portfolio also includes indices, shares, treasuries, and commodities. It is licensed and regulated by the Financial Conduct Authority (FCA).
ActivTrades is the second forex broker in the past few days to announce margin increase on select instruments, ahead of the referendum in Italy, after IG Group.