JustForex to hike margin on GBP pairs during UK referendum

JustForex to hike margin on GBP pairs during UK referendum

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Forex broker JustForex said on Thursday it will increase margin requirements by 2.5 times for currency pairs containing British pound (GBP), due to possible hike in market volatility resulting from the upcoming UK referendum. The move will be temporary, starting 6 June, 2016, until second notice.  

The broker asked traders to pay attention to the volumes of open positions containing GBP and to adjust expert advisors if necessary.

The UK will hold a referendum on 23 June, 2016, to decide whether the country will exit the EU (aka Brexit) or remain in the union (aka Bremain). Both scenarios are highly likely, considering the on-going voter turnaround, and experts are not certain of the possible outcome of the referendum. Speculations and referendum pollings have already had a sensible impact on the markets, making them more volatile.

Whatever the outcome of the UK referendum, it would surely have a strong impact on the sterling pound, although at this point it is not certain whether in the long-term that would be a positive or damaging effect. The UK referendum is among if not the most important political event this year. Many experts refer to it as having historic significance. Some forex brokers are adjusting their trading conditions to offset client losses, JustForex being just one of them.

In mid-May, the Cyprus Securities and Exchange Commission (CySEC) issued on Tuesday a notice addressed towards Cyprus Investment Firms (CIFs), which it oversees, requesting from them to take precocious measures in regards to the the possible exit of the UK from the European Union.

UK forex brokerage IG Group has partnership with political polling agency Survation to deliver a series of polls ahead of UK’s EU referendum and to offer trading in political binary options on the results of the vote. The broker said at the time the poll results would be broadcasted on IG’s live video service. According to the latest published results, 81% of traders believe the UK will continue to be a EU member.  

JustForex is a brand of IPCTrade Inc., which is licensed by the International Financial Services Commission (IFSC) of Belize. It offers trading in forex and commodity-based derivative instruments. It offers Classic, no dealing desk (NDD), and electronic communication network (ECN) trading accounts and all variations of the MetaTrader 4 (MT4) trading platform – desktop, mobile, and web-based.

JustForex also partners with other brokers under affiliate, introducing broker (IB), and regional representative programs.

Source: JustForex

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