Changes in leverage rates for the period of the French presidential elections

April 19, 2017 15:03

Dear Trader,

French presidential elections, which are due on 23 April and also, in case no candidate wins a majority, on 7 May 2017, will likely have a wide impact on financial markets.

To minimise the potential risks connected to increased market volatility, we decided to introduce several changes to our leverage rates.

These changes will take place on Friday, 21 April, at 00:00 (EET) until Monday, 24 April, at 12:00 (EET). In case of a run-off election, the changes will also take place on Friday, 5 May until Monday, 8 May (at the same time as above).

These changes include an increase in the margin requirements for all instruments on all account types. For the duration of the above periods, the highest leverage rate for any instrument will not exceed 1:50 (i.e. a margin rate of 2%). Additionally, you can turn on the Close Only mode for any instrument within any of the above periods.

Please note that increased margin requirements will apply to all positions, including those opened prior to the above terms. For the changes in our leverage rates, please see the table below:

Normal leverage rates

Changed leverage rates

1:1000

1:50

1:500

1:25

1:200

1:10

We strongly suggest to take into account the potential impact of the above changes before you start trading.

The period leading up to, during and after the French presidential elections is marked by a number of additional risks, including:

a. sharp moves in market prices, especially those on EUR-based CFDs and EUR currency pairs.

b. significant price gaps, especially after weekends.

c. limited liquidity, which may result in an increased amount of order rejections and slippage.

In addition to the abovementioned changes, MTrading reserves the right to implement further changes, depending on the market situation surrounding the French presidential elections. We may inform you of such changes via our website, email, or internal MetaTrader notification system.

The changes may include, but are not limited to:

a. further increases in margin requirements on any instruments

b. additional trading limitations or extension of the terms of any or all above mentioned amendments for an additional period of time.

If you have any questions, comments or concerns, please do not hesitate to contact our [customer support team|hello@mtrading.com], or your account manager.

*Sincerely,
MTrading Team*