City Index warns of market volatility due to situation in Ukraine
City Index, a retail FX and CFD broker owned by StoneX, has warned its clients of increased market volatility due to the Russia Ukraine conflict.
The broker says that, in response to volatility, trading on some of its commodity markets such as corn, wheat and oats may be impacted. These markets may be set to limit down/limit up or phone-only.
A limit down price is the maximum sell-off permitted in a market on a single day of trading. Once this level has been reached, trading on the market may then be restricted to prevent significant volatility and potential panic selling. A limit down price is typically determined as a percentage decline in a given market, rather than a nominal decline in price.
A limit down period is imposed by an exchange (such as the NYSE) and not by brokers. It usually lasts 15 minutes but may be extended depending on the percentage decline before market open. Limit down does not impact FX trading.
A limit up price is reached when a market reaches the maximum bought level permitted in a single day of trading. Once this level has been reached, trading on the market may then be restricted to prevent significant volatility and further buying. A limit up price is typically determined as a percentage increase in a given market, rather than a nominal increase in price.
A limit up period is imposed by an exchange (such as the NYSE) and not by brokers. It usually lasts 15 minutes but may be extended depending on the percentage increase before market open. Limit up does not impact FX trading.
FOREX.com, another of the Forex businesses owned by StoneX, has issued a similar warning. FOREX.com Japan has suspended the opening of new positions in USD/RUB and EUR/RUB.