The Crude Oil market has witnessed increased volatility in recent weeks, this can lead to reduced liquidity, widening of spreads, gapping and a higher risk of a flash crash.
To protect our client’s interests and to avoid unnecessary risk from volatile markets, we’ll be temporarily reducing the leverage on some of our instruments.
These changes will take place on Thursday, 2 April 2020 at the market opening (start from MT4 server time 00:01).
| Products | Current Leverage (All Accounts) | Temporary Leverage (All Accounts) |
| US Crude Oil | 1:100 | 1:50 |
| UK Crude Oil | 1:100 | 1:50 |
The leverage adjustment above will affect your current holding positions and new opening positions. To prevent the liquidation of all positions due to insufficient margin, we would advise clients to reserve sufficient margin to deal with the leverage adjustment.
We’ll be monitoring the Crude Oil market closely and will return to normal leverage once the volatility of these markets has reduced.
The following example describes the change of margin by leverage adjustment.
Example:
Under 1:100 leverage, if the price of USOIL is USD 22.00, the margin of 1 lot USOIL required:
22.00 x 1 lot x 1,000 contract size / 100 = USD 220
Under 1:50 leverage, the margin required:
22.00 x 1 lot x 1,000 contract size / 50 = USD 440
Please feel free to contact us via email: cs.gm@atfx.com if you have any questions.
Sincerely,
ATFX
