Ahead of the US election vote next month, one of the latest brokers that possibly hike margin rates is Forex.com.
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, with FOREX.com being the latest to possibly alter its trading conditions.
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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.