The referendum on the United Kingdom's membership in the EU is to take place on June 23, 2016.
The referendum is broadly expected to cause turbulence in global financial markets no matter whether the vote will be for or against Brexit. Any developments in voting and any outcome will evidently make a profound impact on the forex market, first and foremost on the GBP and EUR currency pairs. Therefore, these instruments will be trading with record high volatility throughout next week.
To protect clients' positions, the company decided to change marginal requirements for certain trading instruments on a temporary basis.
The following amendments are introduced for the week from June 20 until June 27:
1.The minimum margin requirement could be raised to 2% for the following currency pairs: GBP/USD, EUR/GBP, GBP/CHF, GBP/JPY, GBP/AUD, GBP/CAD, and GBP/NZD as well as all exotic crosses involving the GBP.
2.The margin for some stock indices such as #N100, #DAX, and #FTSE could be increased several-fold from a standard requirement in case of higher volatility.
3.The minimum margin requirement could be raised to 0.5% for the following currency pairs: EUR/USD, EUR/JPY, EUR/CHF, EUR/AUD, EUR/CAD, and EUR/NZD as well as all exotic cross pairs involving the EUR.
As you are aware of higher volatility and big changes in marginal requirements, we strongly advise you to consider seriously that trading the above-mentioned instruments entails grave risks for the whole week.
Please adjust your trading strategy for the circumstances. You can either minimize or refrain from trading these instruments. Besides, make sure you have enough available funds in your account to maintain open positions.