Admiral Markets Alters Margins Ahead of Italian Referendum

Italy’s constitutional referendum is slated to take place on December 4, 2016, and ahead of the event several brokers are taking precautionary steps to protect their client bases. The changes of select margins at Admiral Markets are an example of this.

The Italian referendum is the latest case of a convulsive vote taking place in a large economic bloc, with the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term vote in June and the recent US election earlier this month sparking Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term across currency markets. The referendum is very important as a ‘No’ vote could potentially trigger an Italian schism with the rest of the EU. Such a finality could have large ramifications for the EUR, which has already been one of the more active movers in recent weeks.

Admiral Markets Changes Margins

Consequently, ahead of the vote, Admiral Markets will be instituting a fourfold increase in the margin requirements for EUR-based cash index contracts-for-difference (CFDs) and bonds CFDs on all Admiral Markets accounts. Furthermore, the ‘Close Only’ mode will be enabled for the less liquid cross rates plus exotic currency pairs with the EUR.

The aforementioned changes will go into effect prior to the market close on Friday, December 2, 2016, and will be in place until 12:00 (EET) on Monday, 5 December 2016. A more in-depth leverage change is also included below:

easyMarkets Utilizing dealCancellation Tool

In addition to Admiral Markets, easyMarkets has embarked on a different strategy, instead freezing its margins, though providing a dealCancellation tool. The broker will continue to offer access to 200:1 leverage heading into the weekend and during the referendum, as well as guaranteed stop loss and fixed spreads.

However, the group’s dealCancellation tool enables traders to cancel losing deals within 60 minutes and get their money back, for a small fee. Italian referendum traders also have the option of insuring their trades in the case of widespread volatility.