Forex.com Sets Out Possible Margin Changes Ahead of US Election

Ahead of the US election vote next month, one of the latest brokers that possibly hike margin rates is Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term.com.

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The presidential race looks to be the major theme of next two or three weeks, perhaps even for a longer time, with the November 8 decision holding the keys to the trajectory of financial markets in the last days of the year. In light of the upcoming vote, some brokers have taken preventative steps in making sure traders are given the adequate measures of protection in the form of reduced Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term, with FOREX.com being the latest to possibly alter its trading conditions.

The company noted in the announcement that in anticipation of the vote on November 8, markets may become increasingly volatile and therefore there may be some temporary changes to the clients accounts. FOREX.com further explained that these changes may include, but are not limited to, updates to margin requirements in the days leading up to and after the vote.

On this basis, the company noted in a related post on its website that clients should actively monitor their positions, and make sure they have adequate funds in their accounts to maintain minimum margin requirements, and not to over-leverage themselves. In addition, FOREX.com emphasized that it will notify traders with any changes that affect their accounts and encourages them to check its website periodically for updates.

Finance Magnates has covered some brokers in recent days who have joined in preparing to help reduce client’s exposure – and in some cases their own – by hiking margin requirements, and imposing various trading restrictions during the entire US election week and/or days preceding and following it.