Due to the upcoming UK General Election on 8th June, GBP currency pairs are expected to continue exhibiting relatively high levels of volatility. Whilst these market conditions may present some trading opportunities, you should be aware that they may also result in wider spreads and reduced liquidity during periods of particularly high market volatility.
For the purposes of risk control, over this period the margin ratios of GBPUSD, GBPJPY and EURGBP, will be adjusted temporarily to 2% (1:50), and the UK100 will be adjusted to 4% (1:25) from the opening of trading on June 4th (UK time) until the close of trading on June 9th. After June 9th, the adjusted margin ratios will be reset to the pre-change ratios (0.5% for GBPUSD, 1% for GBPJPY & EURGBP, and 2% for UK100).
Please also be aware that if you have any open positions before the change is made, the adjusted leverage requirement will be effective on your open positions. Therefore, please ensure that you have sufficient funds in your account to prevent the leverage decrease resulting in auto-closeout of your positions.
If you have any questions, please do not hesitate to contact us.