Denmark-based retail forex broker Saxo Bank has put out a statement about trading conditions in the current post-Brexit vote environment.
LeapRate readers will recall that Saxo Bank was one of the first Forex brokers to limit trading leverage given to clients by raising margin requirements for most open and new trading positions, which seem to have done the job of protecting traders from the very large swings in the financial markets seen today.
The statement from Claus Nielsen, Head of Markets at Saxo Bank, reads as follows:
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Claus Nielsen, Saxo Bank
Going into the UK referendum we have considered it important to take prudent measures to reduce our clients’ exposure to risk and to be fully transparent. It has been essential for Saxo Bank to explain to our clients that neither clients nor Saxo Bank benefit from overleveraging and that we, with our clients’ interest firmly at heart, are doing our utmost to educate on the range of options available.
This has proved to be the right decision as our numbers show gains for our clients despite the volatility in both FX markets and Asian equity markets. The German DAX index was down 10 % at open and we expect further volatility on European stock markets today and continue to recommend clients to be cautious in this environment.
We definitely led the way by being transparent and prudent in regards to increased margins and looking at the performance of our clients, it was the right decision. We are content with the current margins and continue to monitor volatility closely.