FXOpen Warns of High Volatility and Increased Margin Caused by Brexit
High volatility affecting GBP and EUR pairs is expected on 20-27 June due to the Brexit vote held the United Kingdom on June 23, 2016 to decide whether the country should remain or leave the European Union.
Starting from the market opening on June 20th and throughout the whole week FXOpen customers may experience changes in trading conditions such as high volatility, increased margin, low liquidity and wider spreads. The changes will affect all financial instruments involving GBP and EUR, including indices. Margin requirements for all GBP and EUR based instruments may be increased up to 5 times their normal level without further notice.
Possible increased margin is a temporary measure caused by the EU referendum and its influence on the financial markets. Starting with the market opening on June 27th margin requirements will return to their normal values
We urge traders to take into account, that abnormally low liquidity and wide spreads can increase the risks of slippage and consider these circumstances when planning their trading activities for the following week.
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