As you may be aware, the second round of the French presidential election will take place on Sunday 7th of May. As this is seen as a significant event, it will provide traders with increased opportunities, but also increased risk due to the event taking place over the weekend. There is high potential for extreme market volatility, particularly for currency pairs based in EUR.
What does this mean?
High volatility is expected to be seen in the financial markets during this weekend, prices could move several hundred pips in a matter of seconds or minutes. Clients holding positions in EUR pairs should be cautious and closely monitor any open positions
What should you do?
We recommend clients reduce exposure going into the weekend, especially on the EUR crosses.
In order to protect clients from adverse effects, IC Markets' risk management team has decided to make this leverage change due to changing market conditions, as follows:
These changes will be applied to all positions on Friday 5th May 00:00 server time (GMT + 3). They will remain in effect until Monday 8th 00:00 server time (GMT + 3).
Spreads are likely to be extremely volatile and may widen during this period. Traders should be aware of those factors that may affect hedged positions.
We will carefully monitor market volatility and should there be any further changes, we will contact you via email, MT4, or by changes on our website.
If you have any questions or require any assistance, please contact one of our support team members via Live Chat, email: firstname.lastname@example.org, or phone +61 (0)2 8014 4280.