With just 24 hours to go before the British public head off to the polls to vote on whether or not to leave the European Union, the referendum which is regarded as the biggest currency event of 2016 looks set to cause extremely volatile trading conditions in GBP and EUR currency pairs regardless of the outcome. This has led many brokers to amend their trading conditions to reflect this volatility.
UFX has joined the fast-expanding number of brokers who have introduced amendments to their trading conditions. The company has announced temporary changes to its trading terms as follows:
From Wednesday 22 June until Monday 27 June all the GBP pairs will be set for leverage 1:50 whereas gold will set for leverage 1:100. All UFX clients have been informed of the amendments.
Clients have been officially informed of the situation by email.
DMM FX has also issued an update advising that in order to further protect its clients’ positions, trading will be suspended from 07:10 (server time) for the following FX pairs:
GBP/USD, GBP/AUD, GBP/CAD, GBP/CHF, GBP/NZD, GBP/JPY, EUR/AUD, EUR/USD, EUR/NZD, EUR/CAD EUR/CHF, EUR/JPY and EUR/GBP.
Clients who currently hold positions in these products will be able to close out but no new positions will be accepted.
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Trading in the above products is expected to return to normal from 08:00 (server time) on Monday, 27 June 2016, however DMM FX may shorten or extend this special trading period and impose on any other products at its discretion without any prior notice.
In order to protect its clients and the company from the anticipated market turbulence, XM will implement the following measures.
From 01:00 server time (GMT+3) on Thursday, 23 June 2016, the margin required for both new and existing positions will be temporarily increased for all instruments to 4% (25:1 leverage) for all currency pairs, gold and silver and 10% (10:1 leverage) for all CFDs on equity indices and commodities.
Shortly after the announcement of the results, expected on 24 June, the margin required for both new and existing positions will be reduced for all currency pairs, gold and silver to 1% (100:1 leverage).
This temporary measure will be completely waived prior to the market opening of Monday, 27 June 2016, and the margin requirement on all instruments will be automatically readjusted in accordance with the previous leverage settings of each client’s accounts and instruments.
In all cases, clients are advised to consult their brokers websites for a full breakdown and explanation of amendments to their trading terms.
Finance Magnates has reported on an increasing number of brokerages making related changes which can be seen in the list below.