Tickmill Change Margin Requirements Ahead of Brexit.
By Eric on Thursday,
The uncertainty surrounding the coming EU referendum within the United Kingdom (Brexit) on June 23, 2016, has the potential to come up with increased volatility and turbulence within the financial markets. The forex Brokerage Tickmill Change Margin Requirements Ahead of Brexit.
The referendum can occur in the United Kingdom to decide whether or not the British population wishes to stay up their European Union membership or not. This major political event is expected to affect the financial markets and may result in high volatility, price gaps/spikes, lack of liquidity, widened spreads or other movements in the markets.
In order to safeguard our clients and the Company, Tickmill broker will lower the leverage for the referendum week. This modification will affect both existing and new orders.
Tickmill leverage rates are going.
Starting from market open on June 20 until market close on June 24. Tickmill forex brokers normal leverage rates are going to be reduced as follows:
- All GBP pairs – from 1:500 to 1:25 (4% margin need).
- All EUR pairs – from 1:500 to 1:100 (1% margin need).
- UK100 index – from 1:100 to 1:20 (5% margin need).
Accounts that don’t have a standard leverage setting can have their leverage changed by the same proportion as indicated higher than.
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Depending on the market conditions, Tickmill tend to might enforce close-only regime for certain currency pairs or indices. Large accounts that accumulate real market exposure may even see their account leverage lowered more, subject to an earlier warning.
Please additionally consider that Bid/Ask spreads can most likely be significantly wider during market volatility, that might affect even hedged positions.
Because of this change, you will need to shut trades or add funds to your account or risk a possible margin closeout if you have got an open GBP, EUR or UK100 positions with higher levels of leverage and don’t have enough funds to a client’s account to cover the increased margin requirements. Tickmill strongly suggests clients to try to the necessary funding actions well in advance, to make positive client’s account are going to be well-funded before the leverage is lowered.