Please kindly note that Brexit is around the corner and undergoing tight discussion at the moment which may lead to extreme market volatility, thin market liquidity, abnormal spreads and price gaps in currency pairs involving GBP and EUR. In preparation for this, FxCitizen will be taking the following precautionary actions to protect our clients and Company from the anticipated market turbulence during the occassions.
- October 31 – Brexit Day!
- October 21-24 – The European Parliament meets in Strasbourg for the last time, marking the departure of UK MEPs
- October 19 – Special sitting of MPs in Parliament, where they could be asked to approve a deal
- October 17-18 – EU leaders meet with Boris Johnson to address departure terms
1) MARGIN requirements on all currency pairs containing GBP and EUR may increase by 300%, effective from 17 October 2019, server time 00:00 until the volatility of the market is stabilized. This will affect both new and existing positions. Please ensure your account has sufficient margin to sustain your posistions.
2) Wider SPREAD is expected including fixed spreads which may be allowed to float due to high spread received from our liquidity provider. However, we will make all possible efforts to keep it at a minimum. GBPUSD spread is temporary increased to 5 pips and above from now until the volatility of the market is stabilized.
3) Maximum profit made from the affected pairs during the event is limited to a total of 100% from the initial deposit value or limited to 100 pips only, shall any profit made beyond this point, it shall be adjusted to 100% or 100 pips only. For Example, If your initial deposit is 1000USD, the maximum profit you are allowed to take is 1000USD only or if your position had closed at profit of 150 pips, it shall adjusted to 100 pips only
4) Price GAP and SLIPPAGE is expected to happens, which means stop loss would possibly occurs at a worse rate than originally set in the order which is quoted as [sl/gap] in your trade comment. For better understanding, please refer to http://www.investopedia.com/terms/s/slippage.asp
5) If the Negative Balance is abused or done on purpose, balance will be transferred from the gaining account to offset the negative balance on the losing account.
6) 2 minutes scalping rule will be enforced strictly during this period, and all Sell Stop and Buy Stop functions on the related pairs will be disabled and deleted from server time 12:00 onwards
7) In the case of extreme volatility, ‘Closed Only’ function may applied which disallow new positions
We would like to urge all active clients to fund your accounts ahead of time to maintain margin requirements to prevent stop out of your active trades as increased margin requirement and wider spread will lower down your account margin level and may lead to stop out even though all your trades is fully hedged. Plan and revise your trades carefully especially on slippage. As always, we carry on by our commitments to our clients and assure you that all trading will be in accordance to our Client Agreement.
Please do not hesitate to contact our customer support if any question arises.
NOTE: Please be advised that should market conditions deem it necessary, FxCitizen reserves the right to make additional changes to trading conditions in the prior to and after the Brexit.