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Changes to margin requirements: BRENT, WTI

April 12, 2020 12:30

Dear Traders,

The most recent agreement of major oil producing countries (made at the OPEC+ meeting) to cut nearly 10% of total global oil production failed to deliver the anticipated equilibrium to oil markets and to dispel concerns over the global deficit of available storage capacities.

In response to the increased risk of a one-sided market, we will make further changes to our margin rates in BRENT and WTI oil CFDs to ensure they accurately reflect current levels of market volatility and liquidity.

Starting from Monday, April 13th, 2020 we are reducing the maximum available leverage to 1:10 in the following CFDs:

  1. WTI Crude Oil Spot,
  2. Crude Oil West Texas Futures,
  3. Brent Crude Oil Spot,
  4. Brent Crude Oil Futures.

The new reduced leverage of 1:10 will apply to all new positions in the above-mentioned instruments. Previously established positions in these instruments remain unaffected only until your next trading action in these instruments. When we execute a trading order of any type (including stop loss orders, take profit orders, automated trade executions by a Robot/EA and partial closes) in any of the above-mentioned oil CFDs, we will instantly apply the leverage of 1:10 to all your open positions in this instrument.

We encourage all clients who actively trade oil CFDs and wish to keep existing positions open to check whether their accounts are sufficiently funded to weather increased volatility and to prevent the liquidation of open positions (stop out) due to recalculation of margin requirements on the next trading action. Should additional funds be required to support your trading decisions, we provide several near instantaneous payment options in Trader´s Room.

Please also frequently check the details of the affected instruments in the Contracts Specification section on our website because, in stressed market conditions, applicable Swap debits and credits as well as supported trade sizes and trading session times may be subject to significant changes without special notice to you.

We retain the right to introduce further changes to trading terms as may be deemed necessary to ensure better investor protection and orderly trading during highly volatile periods in commodity markets.

Best regards,

Admiral Markets