As the coronavirus gripped the global financial markets creating uncertainties, three major trading platforms – Admiral Markets, Dukascopy, and IG – on Friday changed leverage for margin trading.

Admiral Markets will reduce the maximum possible leverage available to professional clients on four crude oil-related contract-for-difference (CFD) instruments.

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“For notional position values up to 500,000 EUR (or USD, or CHF or equivalent in another currency) the maximum possible leverage will be 1:50,” the firm’s announcement noted. “For notional position values in excess of the above mentioned 500,000 EUR, the leverage will be 1:10.”

The new margin requirements will be applicable from April 4 and remain the same until “further notice” from the platform.

These new requirements will apply to all open and new positions in the four selected instruments.

Dukascopy, on the other hand, has reduced leverage for commodities, indexes, and precious metals to 1:30; however, no change was brought to other trading instruments.

IG also increased the range of minimum margin rates on new positions for the weekend on indices, FX/gold, and oil.

The minimum margin for indices will be raised to 5 percent, FX/gold to 3 percent, and oil (energies) to 15 percent.

“We will revert to lower margins rates on Sunday with minimum rates of 1% Indices/FX and 5% Oil. Once again these changes will be dependent on market conditions over the weekend,” IG noted.

Unpredictable markets

These changes came as the global markets are going through tremendous volatility with the COVID-19 outbreak along with the geopolitical war on oil prices.

As Admiral Markets reduced the leverage for crude markets, it also pointed out that WTI crude oil hit a 17-year low at $19.02 a barrel. The market is still uncertain as Russia and Saudi Arabia are debating cutting global oil supply by 10 million barrels a day to prevent further price falls amid the coronavirus pandemic.

Meanwhile, the IG Group recently launched a new prime brokerage unit under the brand ‘IG Prime,’ Finance Magnates reported.