Market uncertainty is increasing in the run up to the French presidential elections, which will be held on 23 April and, should no candidate win a majority, will continue on 7 May, 2017.
As a response to the current political climate, partly fuelled by a number of recent terror attacks within the EU and the UK, it could be reasonably suggested that the Front National's leader, Marine Le Pen, may have a certain percentage of silent supporters backing her political programme and, because of this support, may eventually go on to win the election. Such an outcome may shake the financial markets on a wide scale.
Following these expectations, please note that there will be changes that will affect your trading.
Specific changes will be applied at 00:00 (EET) on Friday 21 April, until 12:00 (EET) on Monday 24 April. Should a run-off election take place, they will also be applied at the same times on Friday 5 May until Monday 8 May and will include an increase in the margin requirements for all instruments on all account types, meaning that the highest leverage rate offered on any instrument will be capped at 1:50 (i.e. a margin rate of 2%).
Additionally, the Close Only mode can be enabled for any instruments on separate short notice within any of the above periods.
Please note that increased margin requirements will be applied to all positions, including those opened prior to the above terms.
Leverage Changes on Admiral.Markets, Admiral.Prime and MAC/MAM Accounts
The leverage rates available for all bands of the notional position value will be will be capped at a value of 1:50 for all instruments.
Please find an example of the altered leverage rates in the table below:
Normal leverage rates
Changed leverage rates
1:200 or 1:100
Leverage Changes on Admiral.MT5 Accounts
The leverage rate on Admiral.MT5 accounts during the above period will be set to 1:50.
We kindly ask you to properly evaluate the potential impact of the above changes on your trading.
Please be aware of the increased risks within the period leading up to, during and after the French presidential elections, including:
a. Sharp moves in market prices, especially those on EUR-based indices and share CFDs, as well as currency pairs containing EUR.
b. Significant price gaps, especially after weekends.
c. Limited liquidity, which may result in an increased amount of order rejections and slippage.
Further to the amendments described above, Admiral Markets reserves the right to make further changes depending on the market situation surrounding the French presidential elections. These notifications may be provided via our website, e-mail or internal MetaTrader mail. Such changes may include, but are not limited to the following:
a. increases in margin requirements on other instruments and further increases in margin requirements on any instruments;
b. additional trading restrictions or extension of the terms of any or all amendments described above for an additional period of time.
If you have any questions, comments or queries, please do not hesitate to contact our customer support team, or your account manager.