Earnings Releases are a double edged sword. While they can result in large favourable moves in a stock's price, they can also result in a significant negative move in a stock price often without any opportunity to exit the trade as it moves against you. AvaTrade may double margin requirements on specific stocks prior to earnings release. This is a preventative measure to avoid clients with large exposures in the said equity, falling into negative equity.
For more information on individual equity margin requirement rates please visit our Trading Conditions page.
For more information on how to calculate margin requirements please visit the Individual Equities Margin Calculation section of the above Trading Conditions page.