Mirroring the Brexit vote itself, it seems as though two camps are emerging among Retail Forex brokers and their approach to handling the increased volatility around this Thursday’s Brexit referendum in the UK.
The majority of brokers have indeed decided to cut leverage from normal levels, requiring more margin from clients on both new and existing positions.
However a number of leading Forex brokers have decided to ‘stay the course’, allowing their clients to continue trading with normal leverage while still warning clients of the likely volatility as well as a possible widening of spreads, especially in GBP currency pairs, as we approach the June 23 vote.
The latest broker to join the second camp is CySEC regulated broker Exness. Exness sent out the following note today to clients:
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Margin requirements for GBP instruments remain unchanged
Dear clients and partners,
We would like to inform you that there will be no change to the current margin requirements and leverage rules for all instruments, including GBP instruments, in the lead up to the EU referendum on June 23.
However, as the British pound is expected to see increased volatility during this period, we advise all clients to practise conservative trading strategies.
All margin requirements and leverage rules are available on our website.
Should you have further queries, please contact our client support at [email protected].
Best regards,
Exness Team