With the 2016 US Presidential Election just around the corner, the foreign exchange market is stirring and traders are feverishly speculating what the outcome will be on 8thNovember.
In anticipation of increased volatility in the markets around the US Presidential Election, ICM Capital will increase margin requirements for all account types.
For ICM Standard (Instant Execution)
As of Sunday 6th of November 2016 the margin requirement will be increased on all Forex, metals, US indices and US stocks on ICM Standard (Instant Execution) and ICM Direct (ECN Market Execution). Due to the uncertainties we may increase the margin further if required and also we reserve the right to increase the stop out level. The newly introduced leverage will reduce the risk of clients entering negative balances during big market movements or gapping events. The spreads are expected to be widened significantly on both Instant and ECN execution. Please refer to below table for further details:
Why is this one of the most important elections in history?
When the world's largest economy, the United States, chooses a new president it generates worldwide attention. The decision will be made as to who will move into the White House in January and who will be the new leader of the United States of America. These elections don't only affect the US financial markets but have a big influence on Europe and the rest of the world.
How can you protect yourself in time of uncertainty?
It is essential that all accounts hold sufficient funds to cover 100% of the total margin requirement in order to maintain the open positions. Also in order to avoid possible margin calls and/or stop outs, you may be required to close some of your positions or deposit additional funds.