Forex Club reduces leverage to 1:20 before Brexit vote

Only two days remain until the Brexit referendum and brokers are still maneuvering their risk controls before Thursday. Today we learned that brokerage Forex Club, whose Russian company, FOREX CLUB LLC, is a founding member of CRFIN issued a notice stating that the UK’s EU referendum, may cause significant volatility and liquidity problems in the market that can result in spreads widening and substantial risks.

Due to this and in order to protect traders from related possible losses effective the night from Tuesday to Wednesday (22th of June) maximum leverage available for trading is not going be more than 1 to 20. Thus, margin requirements for positions that are already open will be adjusted and may be stopped-out in case there is not enough equity.

The broker also noted that it’s possible that later next week leverage can be lowered further to 1 to 10 and other limitations may be applied depending on market situation.

Source: Forex Club Change of trading terms and conditions notice


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