Changed trading conditions due to UK Referendum High Volatility

June 23, 2016

As everyone has already known, “UK Referendum”(also known as Brexit) will take place on 23rd of June in 2016. The vote will be held in UK on the Thursday, and this political event is expected to have huge impact on the financial markets and may lead to high volatility, the price differences, lack of liquidity, widening of spreads and other market movements.

Atiora as an ECN broker, takes responsibilities on exceeded losses and will need to reduce risk exposures as possible in its clients’ trading accounts.

This measure will be taken to protect the company and its clients and might be extended more depending on the market conditions. This change will affect both existing and new orders.

The maximum leverage available(margin requirement) will be reduced to 1:25(4% margin requirement) from 20th of June to 24th of June, for following financial instruments.

  • All  cross pairs of GBP
  • All cross pairs of EUR
  • Some indices “UK100”, “EUSTX”, “FRA40”, “GER30”, “IT40” and “SPA3”

Please remember that the changes will be made on both new and existing positions. Meaning that the trading server could trigger “Stop Out”(Liquidation) immediately with the changes of conditions if you have existing open positions.

The trading server of Atiora triggers “Stop Out” at the 20% of Margin Level. If you are worried about the low margin level in your trading account, you are recommended to make deposits more to support your positions.

Please remember that smaller the account balance, more vulnerable to market volatility.

Hedging positions with margins

In case you re hedging positions, please note that doesn’t lock your margin level at the same as Atiora offers only variable spread through all account types.

High volatility caused by some political/economical events such as UK Referendum Vote could widen the spread to a few dozens of pips in a moment. And if the spread goes higher, more margins required for hedged positions.

It is often reported that some traders complain about losses caused by “Stop Out” when these traders had all positions hedged.

You are always recommended to have enough account balance for your positions.


 

If there is no further notice, the changed leverage will return to its previous size after the close of markets June 24, 2016.

Please take into consideration that this is a temporary measure, but we strongly recommend that you consider these margin requirements and very high volatility in the markets to make adjustments to your trading strategies accordingly.

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