Due to the 2020 US presidential election, voting will begin on November 3. Before and after the election, the market conditions may be extremely unstable, and all related products in the financial market will fluctuate greatly, which will lead to the trading risks of product spread expansion, short quotation and weak liquidity. At the same time, the news about the US general election may be updated frequently, which will also lead to a sharp increase in market volatility.
In order to avoid trading losses caused by the uncertain liquidity risk in the market, redstonefx will temporarily adjust the product leverage rules on November 1, 2020 GMT this weekend, as follows:
1.The lever of precious metal products will be fixed to 1:100
2.Leverage of foreign exchange products will be reduced from 1:1000 to 1:500
At that time, the adjustment of leverage will affect your position and subsequent open position. In order to avoid the risk of strong balance caused by insufficient margin due to the adjustment of leverage, it is suggested that you pay close attention to the account margin and reduce the position or increase the margin in time. If the above rules are changed and adjusted again later, please pay close attention to the official announcement.
We will list the following situations for you: the risk impact on the market caused by frequent news of the general election:
During this period, the market may have a bigger spread than usual.
When the market fluctuates greatly, liquidity suppliers and banks may suspend offering quotations one after another, which may lead to obvious sliding point, and the transaction point may be higher or lower than your original expected point.
Due to the influence of news release and frequent updates, the market may change dramatically. Therefore, as a service provider you trust, redstonefx is committed to providing customers with good trading experience and high-quality trading environment. We will always pay attention to all market changes that may be caused by US election news, and take corresponding measures according to the actual market situation, so as to maintain a stable trading environment for each customer.
In response to changes in the market environment, we may temporarily increase the margin amount of popular trading varieties, so as to reduce the probability of negative equity of customers and reduce the risk caused by fluctuation conditions. At the same time, by increasing the margin of hedge positions, we can also avoid the risks arising from liquidity. Please pay attention to the latest official announcement. In the meantime, we recommend caution. If you have orders for related products, please note that the margin requirements for these orders may increase. We suggest you pay attention to the position of your account and keep enough funds in your account.
When the liquidity is extremely poor or the volatility is extremely high, the market quotation will suspend the trading function according to the situation.
Thank you for your support and understanding. We look forward to providing you with more perfect service.