Here are some potential risks you may encounter during this period:
Spreads:
There may be times when spreads are significantly wider than usual.
Liquidity:
As uncertainty pervades the market, Liquidity Providers and Banks may reduce liquidity. As a result, orders (including market positions) may experience greater slippage, and execution levels may differ significantly from anticipated levels.
Volatility:
The market may respond with extreme volatility to news releases and election updates.
To mitigate these risks, Ultima Markets may consider implementing the following measures:
Margin Increases:
As market conditions warrant, we may raise margin requirements on key instruments. This measure aims to reduce clients’ risk of negative equity and limit exposure in volatile conditions. This could also involve increased margins on hedged positions to manage liquidity risks.
Moving Instruments to Close-Only:
In cases of extremely low liquidity and high volatility, we may deem it necessary to set certain instruments to close-only status.
We will make every effort to notify you in advance of any such changes through email and the mailbox section of your MT4 platform.
If you have any questions or require assistance, please do not hesitate to contact [email protected]
