Leading Australia-based retail forex broker AxiTrader has posted changes to the trading conditions on GBP currency pairs and certain other financial instruments, ahead of this Thursday’s Brexit referendum in the UK.
As predicted by many market analysts, each new poll and change in expected outcome of the very-close race is causing a lot of volatility in the GBP, and in financial markets generally.
AxiTrader is raising minimum margin requirements to 5% on GBP positions, limiting leverage to 20:1.
AxiTrader issued the following note to clients on trading this week:
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‘Brexit’ Changes to Margin Requirements
Events which drive significant market volatility such as the June 23rd ‘Brexit’ Referendum can provide traders with increased opportunity, but also increased risk. In order to protect our clients from such significant market movements, our Risk Department will be taking a prudent course of action and temporarily making changes to the maximum leverage available and stop out levels for all positions.
If you are trading, or holding positions during this period, your action is required.
WHAT IS CHANGING?
From market open on the 20th of June, 2016, we will be lowering the maximum leverage available on all Products. For some Products (specified below) the maximum leverage will be 20:1, all other Products the maximum will be 100:1. This will remain in place until market close 28th June, 2016.
We expect that changes to leverage requirements will be industry wide, and that these changes will only be temporary. Rest assured, you will be notified if requirements or dates are revised at any point.
CHANGES TO MAXIMUM LEVERAGE
A maximum leverage 20:1 has been applied to the following products:
AUDJPY
CAC40.fs
CADJPY
DAX30.fs
DJ30.fs
EURGBP
EURJPY
EUSTX50.fs
FT100.fs
GBPAUD
GBPCAD
GBPCHF
GBPJPY
GBPNZD
GBPUSD
NK225.fs
S&P.fs
SPI200.fs
XAGUSD
XAUUSD
All other products’ new maximum leverage is now 100:1.
HOW DOES THIS IMPACT MY TRADING?
If you are trading, or holding positions during this period, your action is required.
Please take a moment to consider whether this impending change will have any effect on your trading account. The additional margin may require you to add funds to your account, or to reduce your positions, or risk being placed in margin call or being auto-closed out of some of your positions.
If you do not meet the higher margin obligation, your positions will be automatically closed out if the margin in your account is less than 50% of the minimum required level.
AxiTrader offers Credit Card, Debit Card, Neteller and Skrill as instant* and $0 fee methods to fund your trading account.
If you require any assistance, please contact the AxiTrader Service desk on 1300 888 936 (+61 2 9965 5830) or email us at [email protected].
IS THERE ANYTHING ELSE I SHOULD KNOW?
During this market phase of elevated volatility, market spreads in general may widen, and please consider that AxiTrader spreads will reflect market conditions.
We will continue to carefully monitor market volatility indicators in order to revert to our standard terms as soon as we deem possible.