BVI-based Forex broker Gallant Capital Markets has followed the lead of other major FX trading houses by informing all of their FX clients of the new margin requirements ahead of the UK vote, which is scheduled to take place this Thursday.
The new margin requirements take affect today and also apply to certain CFD products like the UK100, which now has an 8% margin level - the highest of all CFD trading instruments. GBP, XAU and XAG margins have also been set at 8%. All other CFDs are set at 5% margin, with margins for NGAS, USOIL and UKOIL being set at 3%. Unlike other brokers, Gallant has decided to keep the elevated margins until June 27th.
Gallant also states:
"Additional increases or restrictions affecting these markets or others may follow. We will be sure to inform you of any additional changes as soon as reasonably practicable."
The company's strongly-worded email also warns traders of the consequences of not maintaining adequate margin on all open positions, "If the equity in your trading account is insufficient to cover the total required margin for all open positions, in accordance with our margin and stop out policies your open positions will automatically and without warning be closed one-by-one,"
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