Barclays Stops Accepting New Stop Loss Orders Due to Brexit Risks - Reuters

Ahead of the crucial vote today in the UK that will determine whether it secedes from the European Union (EU), brokers and trading venues are taking alternative strategies and preventative measures in a bid to potentially mitigate what could amount to highly volatile trading.

The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.

On the retail side, this has culminated in reduced leverage and sweeping changes to margins from GBP-denominated currency pairs and indices. Barclays has taken different measures altogether, following an announcement that it will stop accepting stop loss orders ahead of the vote itself.

Unlike the aforementioned initiatives that were largely cautionary and arguably more targeted in their approach, Barclays has opted to paint with broader strokes, limiting entirely the use of stop loss orders, which is for most traders a pillar of trading strategies. The action by Barclays is hardly a uniform strategy and is designed to chip away at an otherwise speculative environment ahead of the vote itself.

According to a recent Reuters report, clients of Barclays were told that such trades would not be executed. The decision was likely taken as a result of the freshness of the wounds still inflicted by the Swiss National Bank's decision last year, which left the market convulsing after sweeping moves in global currency markets.

In times of large Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, it's commonplace for gaps in services to be experienced, even to major institutional clients. As such, with all eyes on the vote tonight, it appears institutional traders at Barclays now have yet another reason to sit out.