Dear Clients,
The recent volatility in the Crude Oil market significantly increases the risk for traders. The benchmark U.S. oil futures contract for May 2020 tumbled to an unprecedented negative price on April 20, 2020 (Monday). In order to protect our clients’ interests and avoid the risk caused by market volatility, ATFX will temporarily adjust the Crude Oil trading conditions as seen below:
- Using MT4 Server time (GMT +3) and at 00:01 (GMT +8 on 05:01) on April 27, 2020 (Monday), the ATFX Crude Oil Trading Conditions will be adjusted as follow:
Products | Current Leverage | Temporary Margin Requirements (all accounts) |
US Crude Oil | 1:50 | 500 USD/Lot |
UK Crude Oil | 1:50 | 500 USD/Lot |
- The above adjustment changes from fixed leverage to fixed margin.
- The leverage adjustment above will affect current open positions and any new ones. In order to avoid the possibility of liquidation of all positions due to insufficient margin, we would advise clients to reserve sufficient margin for the leverage adjustment.
The following example describes the change of margin by leverage adjustment.
Example:
In the existing trading conditions 1:50 leverage, if the price of USOIL is USD 15.00, the margin of 1 lot USOIL required:
15.00 x 1 x 1,000 contract size / 50 = USD 300
Under new trading conditions, the margin required of 1 lot is USD 500, 2 lots will be USD 1000.
We are following the development of the Crude Oil market closely. When the market calms down and we see fit, the trading leverage will be adjusted back to the normal level. We would advise clients to consider the risks of trading during extreme market volatility and ensure they have a full understanding of risk management.
Please feel free to contact us via email: cs.gm@atfx.com or call: 400-1200-143 if you have any questions.
Sincerely,
ATFX
