UK Referendum – Risk Mitigation Measures
The United Kingdom EU Referendum also known as “Brexit” vote will take place on Thursday, 23rd of June 2016. This political event affect the financial markets and may lead to high volatility, the price differences, lack of liquidity, widening of spreads and other market movements.
Atiora taking active steps to reduce the risks to our contractors during the week (the period may be extended for a few days, depending on the volatility and liquidity), which will hold a referendum. To protect our customers and the company, we are reducing the amount of leverage throughout the week. This change will affect both existing and new orders.
Since the moment opening the market June 20 and until its closure on June 24 the standard amount of leverage will be reduced as follows:
- all pair with the GBP – 1: 100 to 1:25 (4% margin requirement);
- all pair with the EUR – 1: 100 to 1:25 (4% margin requirement);
- on the indices “UK100”, “EUSTX”, “FRA40”, “GER30”, “IT40” and “SPA3” – 1: 100 to 1:25 (4% margin requirement).
Please take into consideration the fact that spreads on the Bid and Ask will become increasingly possible due to market volatility, which in turn can affect even on the hedged position.
These changes entail the need to close the deal or add funds to your account balance. Otherwise, you are putting yourself at risk of liquidation of all open positions if you have open positions with the GBP, EUR or indices with higher leverage and the account has insufficient funds to cover the increased margin requirements. We strongly advise you to make all the necessary steps to replenish your account to it had sufficient funds to decrease the leverage size.
Leverage return to its previous size will take place after the close of markets June 24, 2016.
Please take into consideration that this is a temporary measure, but we strongly recommend that you consider these margin requirements and very high volatility in the markets to make adjustments to your trading strategies accordingly.
If you have any questions regarding this matter, please contact us firstname.lastname@example.org.
Lovely ECN Forex Broker