Do not invest more money than you can afford to lose.
The Foreign Exchange Professionals Association (FXPA), a US trade group of forex professionals, issued a statement commending the forex trading industry for its conduct before and during the Brexit shock and its preparations, which resulted in the relatively smooth functioning of the currency markets in the first hours after the referendum results were announced.
“The FX industry prepared for this unprecedented event with enhanced staffing in all areas throughout the night, with technical and capacity planning,” the FXPA said. “The British pound dropped precipitously as the Brexit vote became known, yet the FX industry’s infrastructure and resiliency ensured the smooth operation of the market during bouts of extreme volatility, which is a necessity in allowing the market to express its views,” the organization added.
The FXPA further pledged that in the coming months it will provide a discussion forum for market participants to ensure the operational consistency continues during the upcoming months and the expected further Brexit-related turmoils.
Indeed, many major and smaller brokers reported smooth sailing through the choppy markets in the aftermath of the shock results of UK’s EU referendum. Plus500, for example, said it has set a number of records on Friday and saw a surge of new clients. Also on Friday a Saxo Bank analyst described it “as the best day for market in 20 years”, while Gain Capital’s institutional arm GTX set a $24.2 billion trading volume record. The retail business of Gain Capital also performed well.
The FXPA is a trade group of forex professional that launched in 2014. Its main aim is to engage key US and international regulators, policymakers, the general public and news media through a combination of education, research and advocacy to advance a sound, liquid, transparent and competitive global currency market. Among its members are BATS Global Markets, BNY Mellon Global Markets, Intercontinentak Exchange, Virtu Financial, Singapore Exchange, Thomson Reuters, Traiana, FXSpotStream.
