Dukascopy, the Swiss forex bank and marketplace, has announced that it is updating its trading conditions to reflect the possibility of considerable market volatility leading up to the EU Brexit referendum.The company is one of a growing number of established brokers to have updated its trading conditions.
Due to the probability of high volatility, periods of low liquidity and risk of significant price gaps that may appear on GBP trading instruments following the referendum on EU membership on 23 June 2016, Dukascopy plans to temporarily decrease maximum leverage on GBP currency pairs to 1:30 and to 1:10 on GBR.IDX index CFD as of Wednesday, 22 June 2016 18:00 GMT.
How to Prepare for CySEC’s New Tiered LeverageGo to article >>
This effectively means that on the week of the Brexit referendum the over-the-weekend leverage mode (1:30) for GBP instruments will be applied 2 days earlier than usual. Exception is made for GBR.IDX where the special leverage mode will be 1:10.
Dukascopy expects that the special leverage requirements will be removed on Sunday at the market opening on 26 June 2016, but has reserved the right to prolong or reconsider the special leverage conditions for GBP instruments if found necessary based on the market reaction to the results of the vote.