Admiral Markets Announces Significant Changes to Trade Conditions

The retail foreign exchange broker regulated by the Financial Conduct Authority (FCA), Admiral Markets, reported some significant adjustments to its current trading conditions. On March 28th, Admiral Markets and Admiral Prime account users will benefit from reduced margin requirements, spreads, contract sizes and much higher Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term.

In the case of CHF currency pairs, commodity market assets and the most popular stock indices (e.g. DAX, DJI30), the highest leverage on each type of trading account will increase to 1:200. As a result, investors will be able to use 7 different levels of leverage (depending on the instrument).

In terms of reducing the contracts’ size, developments concern HSI50, JP220, NQ100 and SP500. The current size of the contracts will be reduced by at least ten times. In the case of S&P00, Admiral Markets announced a reduction from 25 index level to 1 index level.

Spread cuts - another change in the current offering - also relates primarily to CFDs on indices and commodity markets assets. For example, FTSE100, SP500, WTI and brent spread will be reduced up to 30%.

In order to implement all of the aforementioned changes, Admiral Markets also announced some Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term pool changes. We are talking here about swaps reduction and trading hours updates for affected instruments.

This modification of trading conditions is an another step to making the brokerage’s offering more client-friendly. In January Finance Magnates reported that Admiral Markets had joined the ranks of companies providing the MT4 Web Trader to its customers.