Admiral Markets hikes margins, triggers close-only mode for some instruments pre-Italian referendum

Admiral Markets hikes margins, triggers close-only mode for some instruments pre-Italian referendum

- in All News, Featured News, Forex Brokers
italian-referendum-italy

Forex brokerage Admiral Markets said on Tuesday it will implement a number of changed in its trading conditions in relation to the upcoming Italian constitutional referendum. One of the changes envisions a fourfold cut in leverage requirements for Euro (EUR)-based cash index and bond contracts for difference (CFDs) on Admiral.Markets account.

Meanwhile, for Admiral.Classic account holders leverage will be at least halved and for the DAX30 index it will be 50:1.  Margin changes will be applied within 60 minutes before the session close of the respective instruments on 2 December and will last until 1200 (EET) on 5 December

In addition to the above-said changes, Admiral Markets will also switch less liquid cross rates and exotic currency pairs with EUR to close-only mode. No new positions will be allowed in such pairs from 2300 (EET) on 2 December until 1200 (EET) on 5 December. The change will apply for the following instruments: EUR/CAD, EUR/NZD, EUR/CZK, EUR/HUF, EUR/MXN, EUR/NOK, EUR/PLN, EUR/RUB, EUR/SEK, and EUR/ZAR

Following are the temporary leverage rates for Admiral.Markets accounts, which will vary by the account balance:

Account balance

Leverage

EUR, USD, CHF

GBP

[AEX25], [BELG20], [CAC40], [DAX30], [IBEX35], [MDAX50], [STOXX50], [TECDAX30], #Bund

Up to 20,000

Up to 12,000

50:1

20,000 – 80,000

12,000 – 50,000

20:1

80,000 – 150,000

50,000 – 90,000

10:1

Over 150,000

Over 90,000

2.5:1

The broker noted it may, if the market conditions require it, further change trading conditions for certain instruments, including to hike margin rates on EUR-based instruments and other ones, as well as other restrictions.

Admiral Markets is one of several forex brokers that have announced planned changes in trading conditions in relation to the expected market volatility around the Italian referendum. FxPro, IG Group and ActivTrades have all said they are to implement temporary margin changes for instruments that are expected to be affected by the referendum vote. In addition, XTB UK will introduce temporary changed concerning margins on select instruments as a precautionary measure ahead of the referendum.

The Italian referendum will take place on 4 December, 2016. It will decide whether the country’s constitutions would be amended and, depending on the outcome, might mean the resignation of the Prime Minister. It is also seen as a significant event that would show the future of the EU, of which Italy is part. Exit poll results will be released at the same day. The poll data and the vote itself are expected to affect global markets and cause increased volatility.

Admital Markets is a collective brand of Admiral Markets UK, which is based and regulated in the UK, and its Australian sister company Admiral Markets Pty. Both brokers are units of Estonia-based Admiral Markets AS, part of the holding company Admiral Markets Group, which also includes Cyprus-regulated Admiralex.

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