Admiral Markets Details Emergency Plan Amid Historic Oil Prices

The broker will close all crude oil CFDs if the price reaches $0.

In response to the record volatility of crude oil, which saw prices fall into negative territory on the US oil market, Admiral Markets, a foreign exchange (forex) broker has detailed its emergency plan this Wednesday.

In a statement on the broker’s website, Admiral Markets has outlined to its customers that should any crude oil contracts for differences (CFDs) fall below US$5 then it will enable ‘Close Only’ mode and stop accepting new orders for the product.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

Furthermore, should the price of any crude oil CFDs fall down to $0 then the company will stop pricing these CFDs and close all positions at the current market prices, alongside cancelling all pending orders, the firm said. 

“We highly recommend carefully assessing your risk appetite as the situation surrounding the crude oil market is very unstable. Trade responsibly,” Admiral Market advised on its website today.

Suggested articles

$100,000 Battle: PrimeXBT Debuts New Contests ModuleGo to article >>

Admiral Markets: Swap rates will remain volatile

In addition to detailing its emergency plan, the multi-regulated broker reminded investors who are seeking exposure to the underlying oil that Swap rates on spot CFDs are subject to significant changes for as long as the imbalance between supply and demand remains.

The FCA and ASIC regulated broker has imposed a maximum exposure limit of €20,000, or equivalent in another currency, for all spot and futures CFDs on crude oil. Following the events of this week, Admiral Markets has made new futures CFDs available to clients with Trade.MT5 accounts from the 22nd of April, 2020:

_CrudeOilUK_Z0 – Brent crude oil futures CFD, Dec 2020

_CrudeOilUS_Z0 – WTI crude oil futures CFD, Dec 2020

Admiral Markets is not alone in its attempts to protect its clients against risk from the historical price movements in the US oil market. As Finance Magnates reported, some brokers have suspended trading in oil futures, whilst others, such as Interactive Brokers, have suffered from large provisional losses.

Got a news tip? Let Us Know