Authorised and Regulated: FCA UK / GLOBAL

In light of the U.S. President Election that will be held on Tuesday, 3 November 2020, it is expected to see an increase in market volatility.

To safeguard our clients and trading environment, we have conducted a thorough analysis of the risk management policies and have decided no changes will be made to our current margin requirements for the time being.

Nonetheless, we would like to advise that with the high degree of uncertainty, market conditions are expected to be extremely unstable in the following weeks such as: 

  • Spreads: Spreads will be considerably wider during this period.
  • Volatility: Market will be volatile which could easily affect price as it responds to news releases and updates.
  • Liquidity: As the degree of uncertainty increases, there is propensity for liquidity providers to limit their liquidity which could lead to an increased possibility of slippage on executed orders beyond what normally would be deemed acceptable. 

As such, the following measures may be taken to mitigate these risks and establish a greater level of control:

  • Margin increases: Should market risk increases, margin requirements for key instruments will be increased.
  • Moving instruments to close-only: During periods of poor liquidity and significant volatility, we may move some instruments to close only.

As such, please ensure that your open positions are properly managed and be prepared for any potential market movements during these fluctuating times. 

Blackwell Global will closely monitor market volatility and keep you updated should there be necessary changes to our current policy. 

Thank you for your support and understanding.

Do not hesitate to contact us at [email protected] if you have any queries.

All information is made as accurate as possible, but it is intended for guidance only, and is subject to change. Please refer to Blackwell Global’s News Updates for the latest details.