Watch out margins as Brexit referendum approaches
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.