Due to possible increase in volatility, including possibilities of significant price gaps and periods of illiquidity ahead of the UK referendum on 23 June 2016, most of trading banks in the world are increasing the margins requirement on pound, euro pairs and gold.
The UK june 23 referendum is a significant market event whose outcome may lead to disorderly markets impacting pricing and liquidity of certain assets just like CHF flash crash event in January 2015.
In order to protect our beloved MRG Forex customers from volatility spikes due to the UK referendum, please be informed that our margin requirements for pounds, euro and gold are changing on open market 20 June 2016 (MT4 server time). Additional margin increases may be implemented should volatility continue to grow.
Please note that new margin requirements will affect both EXISTING and NEW positions. Make sure you have enough available margin / equity for the days leading up to and during the UK referendum.
We would also like to stress that Stop Loss orders are not guaranteed to be filled at your order level: Stop orders are converted to Market orders once triggered, and dislocations in available liquidity could result in significant slippage on Stop orders.
This new margin requirements are temporary and will remain in force until further notice.
| TRADING INSTRUMENTS | CURRENT MARGIN | NEW MARGIN (UK REF) | |||
|---|---|---|---|---|---|
| Basic | Premium & Sharia | Basic | Premium & Sharia | ||
| EURUSD | $2 | $50 | $6 | $150 | |
| EURAUD | $2 | $50 | $6 | $150 | |
| EURCAD | $2 | $50 | $6 | $150 | |
| EURGBP | $2 | $50 | $6 | $150 | |
| EURCHF | $2 | $50 | $6 | $150 | |
| EURNZD | $2 | $50 | $6 | $150 | |
| EURJPY | $2 | $50 | $6 | $150 | |
| GBPAUD | $2 | $50 | $6 | $150 | |
| GBPCAD | $2 | $50 | $6 | $150 | |
| GBPJPY | $2 | $50 | $6 | $150 | |
| GBPNZD | $2 | $50 | $6 | $150 | |
| GBPUSD | $2 | $50 | $6 | $150 | |
| XAUUSD | $2 | $50 | $8 | $200 | |
It is important that you are aware of the potential risk of this upcoming event, and that you are both prepared and positioned properly as the date approaches. MRG Forex encourage you not to overleverage yourself, and to exercise care, diligence and discipline in your investment and trading.