FX Brokers Eye Tightened Election in US as Race Reaches Final Stretch

Foreign exchange brokerages, along with the broader financial industry, are eyeing the US election next week on November 8, 2016 in what could be one of the most volatile trading events of the year. As recently as last week many pollsters were predicting an electoral landslide for Hillary Clinton, however the dynamic of the race has changed dramatically.

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Presently there exists the potential for an upset win, namely a Donald Trump victory, which could instigate a wide range of volatility. As a result, brokers are implementing margin changes ahead of the US election, which will last from Monday November 7, 2016 to Friday, November 11.

Alpari is the latest such broker, adopting several margin changes as of November 7^th. All standard.mt4 and pamm.standard.mt4 accounts will see a maximum floating leverage will be 1:100. In addition, all ecn.mt4, pamm.ecn.mt4, pro.ecn.mt4, pamm.pro.ecn.mt4, ecn.mt5, and pamm.ecn.mt5 accounts will utilize a maximum floating leverage of 1:50.

For Alpari nano.mt4 accounts, market participants will be governed by a maximum order size of 10 lots and the maximum leverage will be 1:100. Additionally, for standard.mt4 and nano.mt4 accounts – the limit and stop levels will be equal to two spreads. However, in the case of extreme high volatility and 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 constraints, instruments may only be set to close only.

With regard to binary options, between November 7^th and 8^th, the strategies 'Touch' and 'Spread' may also potentially be unavailable in alpari.binary accounts. This compares with many other measures and offerings established by other brokers, which are displayed below:

OctaFX: From October 31 till November 14, leverage for US30, NAS100, SPX500 indices will be lowered from 1:50 to 1:10 on the Metatrader 5 Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term.

Saxo Bank: Margins on most major FX pairs up to 2%-3% with RUB and MXN going to 10% and 15% respectively, while the minimum margin requirement on CFD indices at 4% based on market volatility and liquidity leading up to and through the election.

FXOpen: The company may increase margin requirements up to 5 times their normal level starting from November 3rd without prior notice.

FOREX.com also warned temporary changes to the clients’ accounts which may include, but are not limited to, updates to margin requirements in the days leading up to and after the vote.

ETX Capital has launched a new US Election News Sentiment Index to help better predict what the final electoral result will be on November 8, 2016.

Swissquote Bank launches a new fintech solution to allow clients invest in a selection of stocks or currency portfolios which are most likely to be impacted by a victory from either candidate.