The Brexit vote looks to be the marquee event of the week, perhaps even the year, with the June 23 decision holding the keys to the trajectory of financial markets for the foreseeable future in H2 2016. In light of the upcoming vote, myriad brokers have taken preventative steps in making sure traders are given the adequate measures of protection in the form of reduced leverage, with OctaFX being the latest to alter its trading conditions.
The new world of online trading, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
ACY Securities Supports ASIC’s Product Intervention OrderGo to article >>
The vote itself holds enormous ramifications for currency markets, affecting instruments such as the GBP, UK contracts-for-difference (CFDs), and other indices with exposure to the country. OctaFX will be unveiling a reduced margin schedule across all of its GBP and EUR-denominated currency pairs, slated to begin today, as well as additional changes on the 23rd before the vote takes place.
The new margin requirements will be increased from 1% on GBP pairs (1:100) and to 0.5% on EUR pairs (1:200). However, on the day of the referendum GBP pairs will see a margin hike to 2% (1:50). The changes are by and large commensurate with the rest of the industry, with other brokers announcing changes that generally speaking take into consideration the same risks. A full list of the latest changes by brokers can be accessed by the following link.