Don’t waste your time – keep track of how NFP affects the US dollar!
The ASIC policy prohibits us from providing services to clients in this region. Are you already registered with FBS and want to continue working in your Personal area?
Personal areaThe changes come into effect on March 29, 2021
Effective Saturday, 26 October 2024, all retail clients will be subject to a 100% margin
requirement on all open positions, including both legs of hedged trades. This adjustment
applies to both new and existing orders.
Key Points to note:
Effective Date: The change will be implemented on 26 October 2024, and both new and
existing open positions will have updated margin requirements.
Regulatory Compliance: These changes comply with current regulatory standards and are
intended to enhance our risk management practices.
What will be the impact on Hedging Orders?
For example, previously, if you opened a 1-lot EUR/USD LONG position and a 1-lot EUR/USD
SHORT position simultaneously, the margin requirement was reduced due to the hedged
nature of these positions. However, from 26 October 2024, if you hold both a long and
short position of 1 lot each, the margin requirement will now be the total of both positions,
requiring a full margin for each leg.
Important Notice:
This change means you will need additional margins for all existing open positions,
including hedged trades. If your account balance is insufficient to meet these new
requirements, you may be at risk of forced liquidation. We strongly recommend that you:
- Review your existing orders and current account balance.
- Ensure you have enough funds to meet the new margin requirements.
If you have any questions regarding this update or need further clarification, please do not
hesitate to contact our customer service team at support@fbsaustralia.com.
We appreciate your understanding as we implement this important update.
On October 23, 2020, ASIC released an announcement on several changes to how retail clients trade CFDs from March 29, 2021.
The changes include leverage reductions, negative balance protection, margin close-out changes, and prohibitions on certain inducements. These changes will only affect retail clients.
You can see the full ASIC announcement here.
There will be no immediate changes to your current trading accounts. The changes come into effect on March 29, 2021.
Please note that any existing positions opened before March 29, 2021 will not be affected.
If the funds you hold in your trading account fall to less than 50% of the total initial margin required for all your open trades, there is a requirement for us to close out your positions.
The total losses on your CFD positions will be limited to the funds in your trading account. We are already providing negative balance protection and will continue to do so after March 29, 2021.
Certain benefits will be considered as inducements and will be prohibited. Examples will be the offering of trading credits and rebates or gifts such as iPads etc.
For more information about ASIC’s new regulations, please refer to the ASIC website.
FBS wholeheartedly supports the ASIC decision to implement new rules and believes them to be adequate and timely. We operate under an international FBS brand and are well acquainted with similar regulations implemented in the EU and other regions.
FBS applauds ASIC for striving to protect Australian traders and joins them in these efforts. We are committed to providing FBS clients with opportunities for growth and will continue following the ASIC’s high regulatory standards.
