In a note to its clients London-based DF Markets announced that it will temporarily increase margin requirements on GBP and EUR crosses as well as certain indices during the Brexit referendum tomorrow. The reason for this is the expected high market volatility caused by the vote, which already urged most forex brokers to adjust their trading conditions accordingly.
In order to protect its clients, as of 06:00 a.m. (UK time) on Thursday, 23 June 2016, DF Markets reduces leverage levels for some instruments, as follows:
- as regards currency pairs including the GBP and the EUR: 1:50 (i.e. margin 2%);
- as regards UK100 index: 1:33 (i.e. margin 3%);
- as regards all EU indices: 1:50 (i.e. margin 2%).
The company also warns its clients that market volatility can increase the risk of large price gaps and slippage, and advises them to take these factors into account be when planning their trading activities, to carefully choose their order sizes and closely monitor open positions.
In fact, most forex brokers hiked their margin requirements ahead approaching the UK referendum: Trading 212, VTB24, AxiTrader, FBS, ForexClub, FreshForex, Alfa-Forex, InstaForex, TeleTrade, Pepperstone, Forex.com, FxPro, RoboForex, HotForex, FxOpen, Orbex, just to name a few.
Some companies even announced they are suspending trading in GBP, EUR pairs over Brexit, uch as Australian DMM FX.
Of course, there are some brokers who decided not to go with the flow – Exness and easyMarkets, both regulated in Cyprus, kept their trading conditions unchanged.
DF Markets is a CFD and Spread Betting provider established and located in Canary Wharf, London. The brand is operated by Delta Financial Markets Ltd., a company regulated by the UK Financial Conduct Authority (FCA).
DF Markets offers competitive trading conditions for a wide range of financial instruments – from Forex, Gold and Silver, to a variety of CFDs on different asset classes.