Alpari has switched its operation to close only today across all instruments due to the prospective risks arising from the volatility around Brexit. The company is the first brokerage to take these drastic measures to limit the risks to FX and CFDs markets.
The brokerage is delivering on its earlier warning. Under the current regime of operations, clients will not be able to open new positions, but will be allowed to close their existing trades.
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Alpari is one of the first brokerages to exercise extreme caution, with news about Barclays hitting the wires earlier when the bank officially stopped accepting new stop loss orders.
With ten days of prior notice, the move shouldn’t come as a surprise for traders, but is certainly a surprise given the market’s performance so far today. The company’s Senior Analyst Vadim Iosuba elaborated on the markets’ behavior: “Current market behavior points towards an expectation that the United Kingdom will remain a member of the European Union.”
“This notion is obvious from the rally of the EUR/USD to 1.1420 from 1.1320 and of the GBP/USD from 1.4740 to 1.4940. The sentiment is also positive in the oil market. A Brexit would result in an economic slowdown across Europe and would push oil prices lower too.”