A referendum to determine whether the UK will withdraw from the European Union is scheduled for June 23rd.
This event is of great historical importance, as it is expected to have a tremendous influence on the economy of the largest countries in Europe and the world; and traders should expect to see an increase in volatility of currencies, indices, and commodities.
UMarkets is taking a number of steps, which are designed to decrease potential risks for our clients.
- Starting 20:00 GMT on June 20th, 2016, leverage will be set at 1:25 for all currency pairs containing the GBP and EUR, European and British indices, and precious metals
- In case of low liquidity and high volatility, the instrument can be transferred to ‘Close Only’ mode. This means that it will be impossible to open new trades and orders on these instruments. In addition, it will be possible to close open transactions.
We wish to draw your attention to the fact that these changes will be temporary, and trade will return to normal conditions and margin requirements after the referendum.
Please note that during periods of extremely low liquidity and high volatility, the execution of stop orders is not guaranteed at the requested price. In addition, pending orders are automatically transferred into the market, which can lead to significant slippage against the background of reduced liquidity.
UMarkets will inform you of upcoming changes related to the upcoming event. We believe that a cautious and prudent approach to trading allows you to make successful operations, and reach your target income.