Dear GeminiCap Customer:
Please be aware that due to our ongoing risk reviews and in light of the upcoming UK elections on Dec 12th, Our company anticipate news releases surrounding elections to increase market volatility at any time.
Our company has conducted a review of our risk management policies and would like to advise that, at this time, we do not intend on making any changes ahead of the upcoming events.
We do, however, want you to be aware that we will take appropriate actions as required by market conditions to establish a greater level of control during periods of high market volatility and as such this could happen with little or no notice.
There are numerous risks impacts that these events could have on market conditions, including:
During this period there may be times where spreads are considerably wider than usual.
As uncertainty grips the market, Liquidity Providers and Banks retreat. As a result of this, stops may incur greater slippage and stop out levels may be significantly above or below where you expect to be executed.
The market could be extremely volatile as it responds to news releases and updates.
Actions Our companymay take to mitigate these risks
As your broker, we look to protect clients and ensure you have a positive trading experience. Some measures we may take include but are not limited to the following:
As you might expect, we may raise margin requirements for key instruments. This reduces the chance of negative equity for clients and aims to reduce exposure under volatile conditions. This could even come in the form of raising margins on hedged positions to protect from liquidity risks.
Moving instruments to close only:
Under some circumstance’s liquidity could be so poor and volatility could be so high we may deem it best to move some instruments to close only.
Please note that the automatic rollover of new contracts will bring deduction or compensation to your accounts’ margin due to the price changes, but will not trigger extra spreads cost and other cost changes. Please make sure that you have sufficient margin in your account.
If you have any questions or require any assistance please do not hesitate to contact at [email protected]. We are here to assist you 24 hours a day, 5 days a week.