Saxo Bank and Dukascopy Restore Trading Conditions after Post-Brexit Turmoil

Saxo Bank reduces margin requirements, while Dukascopy increases the maximum exposure limits on CFDs.

Danish multi-asset brokerage Saxo Bank has reverted back to pre-Brexit margin requirements after a review of market conditions in the aftermath of the referendum vote to leave the European Union last month. While the market has remained somewhat volatile, by now almost all brokerages in the industry have rolled back their margin requirements increases.

Saxo Bank will keep a higher margin when it comes to the British pound pairs, and the UK induces, but as far as the rest of the company’s offering is concerned, the operation is business as usual.

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Saxo Bank
Table of margin requirement pre- and post-Brexit, Source: Saxo Bank

At the same time, Dukascopy has increased its maximum exposure limits on CFDs on indices. The company has set the maximum number of units a trader may be exposed to at 30 on the contracts corresponding to the value of the FTSE100 and to 50 contracts on the DAX, CAC, EURO STOXX and IBEX indices.

Multiple markets have been showing signs of exhaustion in recent days with the British pound being particularly weak against the Japanese yen. Global stock markets have been selling off substantially, with Saxo Bank keeping an eye on European induces and maintaining a margin requirement on those at 3 per cent.

The risk-on risk-off trade has been back in focus in the aftermath of the British referendum on the country’s membership in the European Union. With market volatility rising substantially in the past couple of weeks, the summer months of 2016 are set to look different to the usual subdued activity that ensues across the board.

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