The US election is almost here and polling suggests an extraordinarily tight race, a departure from just two weeks ago when the race was looking to be a landslide for Hillary Clinton. As a result, several brokers are adjusting their leverage requirements in anticipation of heightened Volatility in a bid to protect their customers. FxPro is the latest broker to alter the trading conditions of select trading instruments, beginning as early as today.
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As Liquidity is likely to be reduced, coupled with widening spreads, several trading instruments may be affected, namely in the result of a close electoral result or in extreme cases, in the event of a tie. Markets are presently pricing in a Clinton victory, which would suggest a Donald Trump win could convulse markets.
Beginning today at 19:00 BST (14:00 EST) new positions will adhere to a number of leverage changes due to the election. The changes will affect foreign exchange (FX) pairs, commodities, indices, and spreads and can be read below.
A full list of changes to margin requirements or leverages by brokers around the industry can be seen by accessing the following link.
