BREXIT Leverage and Margin changes

My Broker went to 25:1

I guess many other brokers do the same thing. I was thinking about the reasons and this is the main reason I think.

You see, FX is mostly owned mostly by Israeli's. They can set credit and whatever they want.
Since most of us believe that Britain will be GREAT Britain again by leaving the EU, GBP wil plummet. Soros and Co. will profit big time and we as small investors won't get the chane to become millionairs overnight. The moment all leverage will be set back to normal, I expect that many will jump in big time only to see their accounts to be vanished by the huge volatility up and down. If GBP has dropped by hundreds of pips, only a mad bad investor would try to get in. Very risky. So once again, the small investors will be left out the game or have their account vanished by the huge swings. What do you guys think?

I had also received emails from my brokers regarding improvement in leverage and margin requitements, however i found it easy to stop trading for one day or two and then start trading again when this referendum will be over.

Hi ,
this may be of interest to you :

Dukascopy wrote :

Reduction of leverage on GBP instruments amidst Brexit-related volatility expectations.

Due to the probability of high volatility, periods of low liquidity and risk of significant price gaps that might appear on GBP trading instruments following the Referendum on EU membership held in the United Kingdom on 23 June 2016 (also referred to as Brexit vote), Dukascopy plans to temporarily decrease maximum leverage on GBP currency pairs to 1:30 and to 1:10 on GBR.IDX index CFD as of Wednesday, 22 June 2016 18:00 GMT.
In effect this means that on the week of the Brexit referendum the over-the-weekend leverage mode (1:30) for GBP instruments will be applied 2 days earlier than usual. Exception is made for GBR.IDX where the special leverage mode will be 1:10.
It is expected that the special leverage requirements will be removed on Sunday at the market opening, 26 June 2016. However, Dukascopy reserves the right to prolong or reconsider the special leverage conditions for GBP instruments if found necessary based on the market reaction to the results of the vote.

Updating :

Brexit-related margin policy update

In addition to already announced leverage reduction to 1:30 on GBP currency pairs and 1:10 on GBR.IDX index, Dukascopy will temporary decrease maximum leverage on EUR currency pairs to 1:30, and on European related indexes DEU.IDX/EUR, ESP.IDX/EUR, EUS.IDX/EUR and FRA.IDX/EUR to 1:10 as of Wednesday, 22 June 2016 18:00 GMT.
It is expected that the special leverage requirements will be removed on Sunday at the market opening, 26 June 2016. However, Dukascopy reserves the right to prolong or reconsider the special leverage conditions for GBP instruments if found necessary based on the market reaction to the results of the vote.

Happy Brexit !

Vipro Markets lowered the leverage on GBP pairs to 4%. I think it is reasonable. Further details: http://finance.yahoo.com/news/vipro-...120000263.html

The good news is that most brokers are returning to their old trading conditions one by one. The even better news is that so far there are no reported bankruptcies and the like, it looks like they all came out relatively unscathed that I know of.

Just wondering, any brokers reassessed the risk related to Brexit before the event adjusting leverage back to larger values? Got email from HF 1 or 2 days before the Brexit that they changed the leverage on pound to 1:100 (from 1:25).

it's really good news and saying honestly I didn't expect that it would be so painless.

It's fair to say it was once in a life time type opportunity for people who actually traded, but even if you did not or wasn't allowed to, i think that's okay Forex is still pretty good in normal way only, if you have the talent then don't worry about money, it's going to come, just need to be patient.

"You see, FX is mostly owned mostly by Israeli's. They can set credit and whatever they want."

http://i.imgur.com/v9tQi1v.gif

It seriously cracks me up that people are complaining their broker didn't execute them at certain prices during the Brexit crash.

Are you even real traders bros? HILARIOUS!

Considering that Brexit wiped $3 trillion off the market it's really shocking that we haven't heard of any bankruptcies so far. Shocking in the best sense of the word, that is.

It's not shocking at all. All the major brokers increased margin or didn't let people punt over the decision.

That's why you don't hear any brokers (or professional traders) bragging how much money they made. All you actually hear about are the half wit gamblers complaining that their brokers didn't execute their orders at the right price!

The whole event was handles seamlessly by the industry.

Speaking of how brokers handled the Brexit vote from a risk management perspective, Forex portal 'AtoZ Forex' ran a series of interviews with brokers which are worth a read.

We're actually quite proud of how the industry as a whole handled themselves. It doesn't sound like anyone is being chased for hundreds of thousands of dollars in negative balances (such as was the case post the SNB floor) anywhere.

Check out the broker interviews starting from here.

The Foreign Exchange Professionals Association in the USA also issued a statement commending the Forex 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.
All in all, the Forex community reacted very well to what happened. The outcome could've been a lot worse than what it was.