JFD Brokers Doubling its Margin Requirements on Indices Before US Election
- A late Trump surge has threatened to convulse markets, prompting measures from brokers to protect clients.
An already lingering electoral race in the United States has devolved into a coin-flip, with a once certain Hillary Clinton lead now evaporating. As such, markets have not fully priced in a potential Donald Trump victory, leading many brokers to install precautionary measures ahead of November 8th. JFD Brokers has implemented such measures, the first such group to alter its margins for select indices, according to a company statement.
Don't miss your last chance to sign up for the FM London Summit. Register here!
JFD Brokers is a provider of contracts-for-difference (CFDs) and foreign exchange (FX) services. While it is not unusual to alter margins or leverage ahead of potentially volatile events, i.e. the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum earlier this year, not all precautionary measures have involved the same instruments or levels of protection.
In a bid to help protect its clients, JFD Brokers has taken steps to double its margin requirements of multiple index offerings. As a result, the group will increase its margins on Monday, November 7th at 22:00 GMT (17:00 EST), which will continue into the election itself and until Thursday, November 10th.
Given the potential for such a seismic political event, traders are also warned against the potential surge of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and potentially illiquid markets. Consequently, JFD Brokers will alter its margin requirements from 1% to 2% on the following symbols:
- .DE30Cash
- .DE30CashXE
- .EURO50Cash
- .FRANCECash
- .SWISSCash
- .UK100Cash
- .US30Cash
- .US30CashNY
- .US500Cash
- .USTECHCash
Other brokers have taken other levels of precaution ahead of the event. A list of these companies and the measures they have instituted can be read in full by accessing the following link.
An already lingering electoral race in the United States has devolved into a coin-flip, with a once certain Hillary Clinton lead now evaporating. As such, markets have not fully priced in a potential Donald Trump victory, leading many brokers to install precautionary measures ahead of November 8th. JFD Brokers has implemented such measures, the first such group to alter its margins for select indices, according to a company statement.
Don't miss your last chance to sign up for the FM London Summit. Register here!
JFD Brokers is a provider of contracts-for-difference (CFDs) and foreign exchange (FX) services. While it is not unusual to alter margins or leverage ahead of potentially volatile events, i.e. the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum earlier this year, not all precautionary measures have involved the same instruments or levels of protection.
In a bid to help protect its clients, JFD Brokers has taken steps to double its margin requirements of multiple index offerings. As a result, the group will increase its margins on Monday, November 7th at 22:00 GMT (17:00 EST), which will continue into the election itself and until Thursday, November 10th.
Given the potential for such a seismic political event, traders are also warned against the potential surge of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and potentially illiquid markets. Consequently, JFD Brokers will alter its margin requirements from 1% to 2% on the following symbols:
- .DE30Cash
- .DE30CashXE
- .EURO50Cash
- .FRANCECash
- .SWISSCash
- .UK100Cash
- .US30Cash
- .US30CashNY
- .US500Cash
- .USTECHCash
Other brokers have taken other levels of precaution ahead of the event. A list of these companies and the measures they have instituted can be read in full by accessing the following link.