Leverage Returning To Normal
Posted on: 27 June 2016 , by: Pepperstone Support , category: Pepperstone Company News
The British referendum to leave the European Union has now taken place, with the UK voting to "leave", sending shock-waves through global financial markets and causing substantial price fluctuations in many of our trading products.
Throughout the period, Pepperstone's award-winning pricing, technology and execution performed extremely well, a testament to our heavy investment in technology and customer experience in recent months.
It goes without saying that we continue to focus on providing you the best possible FX trading experience in the market and to consider our clients' trading needs.
As a result of your feedback and the vote now being completed, Pepperstone will be restoring our maximum leverage on GBP and EUR based pairs as well as index markets back to their normal levels.
These leverage changes will take place at the market close on the 27th of June (or 00:00 server time).
Margin requirements for all affected instruments will return to normal as follows:
|Indices, GBP and EUR Pairs|
|Leverage Maximum||Up to 500:1|
Whilst we have restored these margins to their pre-Brexit levels, we kindly advise our clients to carefully consider and evaluate the potential impact of the vote on all trading products available. These are:
- Extreme volatility on trading products, particularly GBP, EUR, CHF currency pairs and on UK and European indices.
- The propensity for liquidity providers at certain times to limit their liquidity, leading to a potential widening of spreads as well as potential increased amounts of slippage on executed orders beyond what would normally be deemed acceptable.
- Ensuring you have enough available margin/equity in your account at all times. This includes "hedged" positions (long and short on the same symbol believing this eliminates your market risk) which if spreads widen have the potential to stop out your positions.
We thank you for your understanding and continued support of Pepperstone and wish you well in your trading during this particularly volatile period in the markets. If you have any further questions feel free to contact support.