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.
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 referendum earlier this year, not all precautionary measures have involved the same instruments or levels of protection.
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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 and potentially illiquid markets. Consequently, JFD Brokers will alter its margin requirements from 1% to 2% on the following symbols:
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.