XM.COM Raising Margins Ahead of Italian Referendum

The next big vote in Europe will occur this weekend, with Italy poised to vote in a referendum that could ultimately hold consequences for the global foreign exchange (FX) markets and more specifically the EUR. On Sunday, December 4^th the Italian referendum will be held, which has already resulted in several brokers to altering trading conditions ahead of the event – XM.COM has become the latest broker to alter its margin requirements in anticipation of potential 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.

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The changes are similar in nature to efforts adopted by other brokers throughout the week, which have initiated leverage thresholds and other changes in anticipation of potential widespread volatility. 2016 has had no shortage of volatile events, such as 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 referendum and the US election, each of which resulted in unexpected outcomes.

EUR Pairs in Focus

The Italian referendum this weekend is not guaranteed to trigger any major market moves, however the prevailing of a ‘no’ vote could be the catalyst that would put Italy on a path out of the European Union – an outcome that would have an enormous consequences for the EUR.

As such, XM.COM will be implementing multiple margin changes on December 2^nd at 10:00 p.m. server time (GMT+2) – the changes will however affect both new and existing positions and will be restored to default levels on Monday December 5^th. Consequently, the following alterations will be made:

• 1% (100:1 leverage) for EUR-denominated currency pairs, gold, and silver
• 3% (33:1 leverage) for all CFDs on equity indices and commodities