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Important: UPCOMING MARGIN INCREASE in response to The Upcoming Turkish Presidential Election

2018-6-17 09:45:44Announcements
Important: UPCOMING MARGIN INCREASE in response to The Upcoming Turkish Presidential Election

Dear Client,


As you are aware, The Turkish presidential election of 2018 is scheduled to take place on 24 June 2018. While it is impossible to predict the election results, it is expected to increase market volatility.


UBFX operates a pure, STP model and passes all trade flow directly to its liquidity providers for execution. That being said, the Company has no way of knowing how its liquidity providers, or the markets in general, will react to the election results other than to say that this will be a very volatile and fluid situation. We could potentially experience the extreme widening of bid/ask spreads and removal of liquidity as banks and other providers seek to manage their risks. CFD markets could be especially affected by the heightened volatility given the fact that there are a limited number of liquidity providers offering these products.


In order to prepare for the potential increase in volatility surrounding the June 24th Turkish election, it will be necessary for UBFX to temporarily adjust the margin requirement for the all the TRY FX pairs as well as “TRY-based” CFD product. We would expect these measures to be temporary in nature but would ask that you monitor your margin in your MT4 account and make any adjustments that are warranted in light of the above changes to margin requirements.


From 21:00 GMT Thursday, June 21, 2018, we will begin to adjust our margin requirements for the following currency pairs:


EUR TRY = 10% (leverage from 100:1 to 10:1)

USD TRY = 10% (leverage from 100:1 to 10:1)


With this in mind, we would ask you to be very aware of the very real risks associated with this event. Trading conditions will be somewhat abnormal and open positions and market orders will be subject to ( and revalued against) the prevailing market price, however wide the bid/ask spread may be. We strongly recommend that you consider the effect of this change on your account and take the necessary steps to ensure that the account remains margin compliant throughout the implementation schedule. Consistent with our stated policy, accounts which are not margin compliant are subject to immediate and automated liquidation to restore compliance.


Reducing or eliminating exposure during this event may ultimately be the safest option but obviously that is a decision that each client must take based on your own risk appetite.


If you have any questions, please email us at [email protected] and we'll get straight back to you. Alternatively, call us on (+64) 9-887 7675 and we'll be happy to help.



Kind regards,

UBFX

Your investment partner