Geneva, Switzerland based Retail FX and CFDs broker Dukascopy Bank has announced leverage cuts (i.e., margin requirement increases) for certain instruments ahead of next Tuesday’s US Presidential election. The leverage cuts target mainly Index CFDs and Bullion instruments.
Dukascopy stated that the US presidential elections next week are likely to cause increased market volatility. Stock markets and Bullion could react particularly sensitive to any result.
For this reason 1:30 leverage will be applied to all Index CFDs, XAU/USD and XAG/USD from market opening on Sunday 1 / Monday 2 November until further notice. Dukascopy said it invites its clients to keep in mind reduced liquidity and possible price market gaps during election week. Dukascopy usually offers up to 100x leverage under normal market conditions.
We expect to see similar moves made in the coming days at some other Retail FX brokers.