Trading Conditions on US Presidential Election
- October 26, 2020
- Posted by: Ethan Tan
- Category: Trading Restrictions
Please kindly note that the US Presidential Election is scheduled to be held on 3rd November 2020. It is also unclear what election day itself will look like, given the risk of catching the virus by voting in person, and a record number of people are expected to vote before November 3 by opting for postal votes. Election experts suggest this could mean the result may not be declared on election night, but may take several days – or even weeks – to emerge. However, it is predicted that this event will lead to extreme market volatility, thin market liquidity, abnormal spreads and price gaps in currency pairs with USD and as well as other spot indices. In preparation for this, FxCitizen will be taking the following precautionary actions to protect our clients and Company from the anticipated market turbulence during this period.
1) Due to the extreme high volatility during this period, hence, trader may encounter high occurrence of REQUOTE
2) MARGIN requirements on all FOREX currency pairs will be increased by 300%, and all accounts is limited to leverage 1:50 only effective from 3rd November, server time 12:00 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 positions.
3) Wider SPREAD is expected, including the fixed spreads pairs which will be set to float according to market. No FIX SPREAD during this period.
4) In the case of extreme volatility, ‘Closed Only’ function may apply which disallow new positions
5) 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
6) 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.
7) 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 effective from 3rd November 2020, server time 12:00 until the volatility of the market is stabilized.
8) 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 adjust to 100 pips only
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 are 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 US Presidential Election 2020.
Universe Citizen Limited