Important changes in trading conditions due to the upcoming European Union membership referendum on British withdrawal or BREXIT
Due to the upcoming EU referendum in the United Kingdom, it is widely expected that volatility in key financial markets would likely to rise, in particular foreign exchange markets for sterling (GBP).
European Union membership referendum in the United Kingdom on British withdrawal or exit from the European Union (also known as the EU referendum or BREXIT) is scheduled to take a place in the United Kingdom and Gibraltar on June 23, 2016.
As a result of market uncertainty and high volatility on the potential outcome of the EU referendum, Renesource Capital has taken the decision to increase margin requirements for Sterling (GBP) currency pairs, with the change being effective from the June 9, 2016.
Margin requirements will be increased to 8% for the following Sterling (GBP) pairs:
Margin requirements will be increased to 15% for the following Sterling (GBP) pairs:
Margin requirements will be reviewed on Monday June 27th 2016.
We strongly encourage all Clients to carefully consider the risks associated with trading around UK EU membership referendum dates. High volatility on Sterling (GBP) currency pairs may result in significant price gaps, widened spreads and slippages which may cause negative equity on client accounts (negative balance). It is strongly advised that Clients maintain appropriate and sufficient amount of margin on their trading accounts at all times. Volatility can trigger Margin Call and following Stop Out (Stop Loss) orders on your trading account. We recommend that Clients use Stop orders to limit risks.
Events mentioned above may create market conditions where orders are difficult to execute and execution price of the order received strongly differs from the selected or quoted price due to market movement. Renesource Capital does not offer a negative balance protection thereby Clients can lose more than they have invested (Agreement Ref. Num. A.I.22, D.I.8 and D.I.10).
We appreciate your understanding,