Watch out margins as Brexit referendum approaches - Forex News by FX Leaders

Watch out margins as Brexit referendum approaches

Posted Monday, June 13, 2016 by
Skerdian Meta • 1 min read

There´s absolutely nothing happening today so we might just as well bother you with another Brexit update. Jokes aside this is very important. I received this morning an email from my forex broker where they announced that from next Monday they were going to change margin requirements do to the Brexit referendum. They're yet to provide specifications but logic tells you that they´re going to increase the margins, meaning lowering the leverage. 

Meanwhile, GBP/USD is heading towards the lows

The leverage that by broker provides is 100:1 which is low compared to what we´re used to until before the Swiss National Bank carnage last year. The currencies directly affected will be the British Pound and the Euro so the Pound and Euro pairs will definitely have higher margin requirements. If you´re trading these pairs make sure you cut your position size just in case you don´t get a margin call. I would advise you check the mailbox on your trading platform or contact your broker´s customer support and ask them what´s going on. 

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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