General Market News | Thursday 23rd June, 2016
Synergy would like to again bring to your attention today’s British referendum which will decide the country’s future membership of the European Union (the ‘Brexit”vote”).
There is much uncertainty surrounding the event and this can cause the potential for extreme market movements. Traders need to manage their positions carefully and be aware of the possibilities of significant spreads, price gaps and periods of limited liquidity.
We ask our clients to please understand that even a hedged position can be significantly adversely affected by an increase in bid / offer spreads.
As you know, in our effort to protect the interests of both our Clients and Synergy against unforeseeable events and to minimise the effects of potentially increased volatility in the market, we have already temporarily implemented preventative measures in the form of increased margins on GBP, EUR, and CHF pairs, together with raising margin call and stop out levels
We have been asked many times ‘What will your spreads be over the Brexit?’. It is impossible to predict this as there is no grounds for comparison with any previous event. As such, our advice to Clients is to be extremely cautious and ideally to remain on the side lines.
Synergy has taken the decision to increase margins on gold trading, and these measures will be implemented immediately. In the period prior to, during and after the Brexit vote, Synergy will be closely monitoring the market volatility to assess and decide whether additional preventative measures may need to be implemented (such as further increasing margin requirements, enabling the ‘close-only’ mode, as well as restricting availability of trading).
We kindly request that you review your positions and take any measures necessary to ensure that you have sufficient margin to maintain them. You may add funds to your account by visiting our deposit funds page on our website, or close open positions.