The UK general election on Thursday 12 December may lead to uncertainty in the markets.
As a result, spread betting, CFD and forex brokers may be required temporarily to increase some of their margin requirements around the election date.
What does this mean?
Uncertainty around the election result, and its potential impact on the Brexit process, could cause high market volatility, particularly in relation to GBP crosses and the UK 100 index.
This could mean that some brokers have to increase their margin requirements for professional clients for a short period. Any GBP-related positions you hold could therefore be subject to larger margins. Spreads could also be wider than normal during this period.
Is this permanent?
No. All margin rates and spreads to return to normal once the election result is known. This will depend on the evolving political situation and its influence on the market.
What do you need to do?
Please keep an eye on your open positions over the election period. Monitor your margin requirements and make sure you have sufficient funds in your account to cover any potential margin rate changes.
Message from ETX Markets:
From 11 December 2019, you will temporarily not be able to apply or amend a Guaranteed Stop Loss on any of your positions.
We are taking this necessary action because high volatility is expected over the next few days as the markets react to developments regarding the election.
If you have an existing position with a Guaranteed Stop, this will continue to function as normal, however you will not be able to amend the Guaranteed Stop on that position from tomorrow onwards.