It could be a game-changing week for the UK with the General Elections taking place on Thursday, and forex brokers start taking precautions measures. Following the expectations of increased market volatility, European forex broker Admiral Markets announced it is lowering the leverage available for a number of instruments.
The maximum leverage available for Forex and CFDs on gold, silver and oil will be up to 1:200 (instead of 1:500). As regards cash index and bonds CFDs, the leverage will be up to 1:50. Additionally, the broker states that Close Only mode can be enabled for any instruments on separate short notice.
The changes will be applied at 23:00 (EET) on Thursday, 8 June 2017 until 12:00 (EET) on Friday, 9 June 2017. Admiral Markets also warns that depending on the market situation surrounding the UK General Election, there could be further increases in margin requirements and additional trading restrictions.
The broker kindly asks its clients to properly evaluate the risks during and after the UK elections, as there may be significant price gaps, especially between daily sessions, and sharp moves in market prices, especially on the FTSE100 Index CFD, as well as currency pairs containing GBP.
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.